Multifamily Property: Forward Purchase/Sale
Quickly calculate return metrics to screen potential deals.
Number of units                              
Occupancy rate                    
Occupancy rate:

Enter the occupancy rate that you expect to achieve once the property is stabilized. The occupancy rate is the percentage of units that are leased with a tenant in occupancy.

For example, if your property has 100 units and you expect to have 95 units leased on average, then the occupancy rate would be 95%.
       
Average market rent                            
Annual market rent growth                      
Months to deliver all units            
Months to deliver all units:

Enter the number of months that you expect it will take the builder to deliver all units.

Example: If you expect the builder to deliver 30 units in total and you enter 3 months to deliver all units, the delivery schedule will be as follows:
Month 1: 10 units delivered
Month 2: 10 units delivered
Month 3: 10 units delivered
       
Months to lease units                  
Months to lease units:

Enter the number of months that you expect it will take to lease units once delivered by the builder.

Example: If you expect the builder to deliver 30 units and you enter 2 months to lease units once received, the leasing schedule will be as follows:
Month 1: 15 units leased
Month 2: 15 units leased
       
NOI margin                      
NOI margin:

Enter your estimated net operating income margin, which is expressed as a percent of revenue. NOI margin represents the percent of each dollar earned that remains after operating costs are paid.

For example, if your NOI margin is 65%, then for each dollar of revenue, $0.35 will cover operating costs and $0.65 will be leftover.
       
Annual capital reserve ($/unit)                    
Purchase price                              
Closing costs                      
Closing costs:

Enter closing costs as a percentage of the purchase price.

Closing costs can include legal costs, pursuit costs and broker fees.
       
Exit cap rate                                
Selling costs                      
Selling costs:

Enter selling costs as a percentage of the exit price.

Selling costs can include legal fees and broker fees.
       
Financing acquisition with debt?    
           
  Loan-to-value ratio                          
  Average interest rate                          
  Origination fee                            
  Exit fee                                
                                                 
                                                 
                                                 
                                                 
                                                 
                                                 
                                                 
                       
Stabilized
Cap Rate 		Unlevered
IRR 		MOIC
Stabilized
Cash-on-Cash 		Levered
IRR 		Equity
Multiple
Refer to the outputs tab to review your forecast.
Refer to the settings tab to review default settings.
                       
                       
                                       
  Outputs                          ($ figures in 000s)
  Financial Forecast           Total
    Start date                    
    End date                    
                                       
    Potential gross revenue  
    Vacancy loss  
    Downtime  
    Effective gross revenue  
    Operating costs  
    Net operating income  
    Capital costs  
    Operating reserve  
    Cash flow before debt service  
    Debt service  
    Interest reserve  
    Free cash flow  
                                       
  Sources & Uses  ($ figures in 000s)          
  Sources                                
    Debt                              
    Equity                              
    Total sources                          
                                       
  Uses                                  
    Purchase price                          
    Closing costs                          
    Operating reserve                        
    Loan costs                            
    Interest reserve                        
    Equity shortfall                        
    Total uses                            
                                       
  Exit Value  ($ figures in 000s)          
    Exit cap rate                          
    Exit net operating income                    
    Exit value                            
    Selling costs                          
    Net exit value                          
                                       
  Operating Metrics    
    Units delivered                  
    Units leased                  
    Occupancy rate                
    Market rent ($/unit/month)          
    Market rent growth              
    NOI margin                  
                                       
  Debt Metrics    
    Debt service coverage ratio    
    Debt yield                    
                                       
  Return Metrics   Total
    Return on invested capital    
    Cash-on-cash return              
    Unlevered IRR                          
    Levered IRR                          
    Multiple of invested capital (MOIC)            
    Equity Multiple                        
                                       
  Timeline              
  Date Units Delivered Units Leased            
             
             
             
             
             
             
             
             
             
             
             
             
  After            
                                       
  Total            
                                       
                                       
                                       
                                       
                                       
                                                                                 
  Settings                                                              
  Analysis Start Date                                                                
  Enter the date that you expect to receive the first unit from the builder:  
    Year                                                                  
    Month                                                                  
                                                                                 
  Investment Horizon                                                              
  Select the number of years representing your investment horizon:                                                
   
                                                         
                                                                                 
  Growth Rates                                                                    
  Would you like to apply growth rates to the first year of the forecast?                                              
   
                                                                     
                                                                                 
  Loan-to-Value                                                                    
  Select which inputs are included in the denominator of the loan-to-value ratio:                                          
   
Purchase price                                                                    
   
Closing costs