Lenders re-underwrite the T-12 by normalizing management fees, adding market vacancy, and stripping non-recurring items. What you actually qualify on can be 10–20% lower than the seller's T-12.
Underwriting
T-12 (Trailing Twelve Months)
The property's actual income and expenses over the last 12 months — the primary underwriting document for commercial multifamily.
More in Underwriting
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- Tri-Merge Credit Report— A single report combining Equifax, Experian, and TransUnion — the lender uses the middle s…
- Reserves— Liquid post-close funds a lender requires you to keep in the bank, measured in months of P…
- PITI— Principal + Interest + property Taxes + Insurance — the four components of a full monthly …
- Gross Rent— Total rental income before any expenses or vacancy adjustments.
- Market Rent— The rent a property would command if leased today, established by an appraiser using recen…