Question: make a critical comment on the following: For example, in the Westwinds case study, one significant risk that will need to be vetted is deferred

make a critical comment on the following: For example, in the Westwinds case study, one significant risk that will need to be vetted is deferred maintenance and the overall condition of the building systems. In particular, HVAC, foundations, or roofing systems can present both operational and financial challenges if not carefully assessed during due diligence. Aging systems can lead to frequent complaints, high utility costs, and ultimately unanticipated capital costs that inevitably erode project returns. To mitigate this risk, we will incorporate a thorough building assessment into our underwriting, including third-party inspections of mechanical, electrical, and plumbing systems. Establishing a proper capital budget that accounts for HVAC replacement costs and efficiency upgrades ensures the property remains competitive in the market while reducing the risk of disruptive, large-scale system failures in the future

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!