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When investing in a multi-family property, it’s important to determine if a deal is better than the one you made as an investor. For instance, if you make assumptions that are not always honored, a deal might not be as good as expected. One of the most critical factors that a real estate investor should consider when it comes to investing is the property’s past performance. 

Besides looking at the past six or 12 months, we also look into the trends that have occurred in the market. This helps us determine if the property could perform well in the future. One of the most important factors that an investor should consider when it comes to investing is the accuracy of their assumptions.

Artificial intelligence and machine learning are two of the most commonly used tools in the real estate industry to analyze and evaluate properties. They help us make better decisions when it comes to investing.

Using technology 

Machine learning is one of the most commonly used tools in the real estate industry, a type of artificial intelligence that can learn from its prior experience. In contrast to human beings, computers are capable of imitating the behavior of intelligent individuals at a speed that’s faster than what we are capable of.

ML and AI allow us to identify which markets to focus on and which properties to avoid by analyzing past and future performance. The technology will then generate an idea of how it will perform in the market and submarket later in the future on an annual and quarterly basis. 

AI software can also be used to assess a property’s potential performance. It can also analyze other market data, such as lease terms and retention rates. With the help of AI, we can additionally predict the market’s future performance by analyzing sales comps, operational forecasts, and lease transaction data. All this helps us look to the future.

AI software can also predict the future performance of properties by analyzing their various aspects, such as tenant patterns, neighborhood forecasting, and predictive maintenance. These tools can help us make informed decisions when it comes to investing.

Using the data created by AI

One of the most important factors we use when assessing a property’s potential performance is the potential rent growth. With the help of AI, we can also predict the future performance of property by analyzing its various aspects, such as tenant patterns, neighborhood forecasting, and predictive maintenance. However, we still maintain a conservative approach to making projections.

The ability to analyze and predict the future performance of a property is very important, as it allows us to make informed decisions when it comes to investing. The data collected by AI and ML technology is more reliable than traditional methods and includes other market and submarket levels.

AI technology is currently being tested to predict the future performance of properties by analyzing its various aspects, such as tenant patterns, neighborhood forecasting, and predictive maintenance. This method can help us maintain a higher occupancy rate and improve our underwriting assumptions.