The Best Ever CRE Show JF 4116: Multifamily Meltdown Risks, Operator Red Flags, and Today’s Opportunities ft. Rod Khleif
Dec 11, 2025
In this discussion, Rod Khleif, a seasoned multifamily investor with over 40 years of experience, dives into the complexities of today’s multifamily market. He emphasizes the need for conservative underwriting, realistic rent growth assumptions, and thorough operator due diligence. Rod reveals common mistakes operators make, shares insights on where to find opportunities amidst current market distress, and outlines critical questions for investors. Plus, he offers valuable advice on navigating the next investment cycle wisely.
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Learn The Business Before Wiring Money
- Educate yourself before investing; understand underwriting and deal mechanics.
- Use tools and training to spot when sponsors massage numbers and avoid lazy investments.
Distress Is Present And Growing
- Distress is already appearing as prices and bank-owned assets drop dramatically.
- Rod expects larger-scale opportunistic buying and more distress into next year.
Stress-Test Every Pro Forma Assumption
- Stress-test core underwriting levers: rent growth, expenses, vacancy, cap rates, and debt.
- Be conservative on rent escalations and model higher expense and vacancy scenarios.
