An SBA buyer was looking at a $1.2M deal with $240K projected FCF.

But…

❌ 85% of units under verbal or cancel-anytime contracts
❌ No formalized software or tenant payment portal
❌ Owner handled all relationships
❌ Travel reimbursements and family payroll not adjusted

📉 Adjusted FCF: $80K
📉 Revised valuation: $540K

✅ Moral: Managing properties isn’t the same as owning a transferable business.