The truth about a master lease on a multifamily property from a leaders perspective

While this sounds ideal from an investor. It is an absolute nightmare from a lenders perspective.
If that tenant does not pay, then you have to evict everyone in that building !
Which is a giant court battle especially if it’s a low income housing situation
Also, the lender will underwrite to market not to the leases so while the Net Operating Income looks amazing, expect the lender to  evaluate through market conditions and likely lowering the NOI and valuation.


Did you miss our previous article...
https://trendinginrealestate.com/multifamily-investing/how-to-properly-start-a-basic-multi-family-real-estate-investment-purchase-evaluation