Multifamily Property: Value-add
Use the deal screening tool to calculate various return metrics.
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 in-place rent                            
Annual in-place rent growth                      
Average market rent                            
Annual market rent growth                      
Percentage of units to be renovated        
Units to be renovated:

Enter the percent of total units that will be renovated.

For example, if your project has 10 units and you expect to renovate 8 units, the percent of units to be renovated is 80% (8/10).
       
Renovation timeline:    
     
Renovation timeline:

Select the number of months it will take to complete the renovation project.

For example, if you are planning to renovate 8 units and it will take 1 month to renovate and re-lease each unit, then enter 8 months for the renovation timeline.
       
Cost to renovate each unit ($/unit)        
Cost to renovate units:

Enter the average amount it will cost to renovate each unit.
       
Other renovations ($/unit)            
Other renovations:

Enter the amount per unit that it will cost to do other renovations (e.g., building, common areas, etc.)

For example, if you budgeted $1 million to renovate the building and there are 100 units, then enter $10,000 per unit as the amount for other renovations.
       
Post-renovation step-up in market rent      
Post-renovation step-up in market rent:

Enter the percentage increase in market rent that you expect to achieve after the units are renovated. This step-up in market rent is warranted because renovated units should command higher rents as compared to non-renovated units.

For example:
- average market rent: $2,000 per unit

- post-renovation step-up in market rent: 10%

- average market rent for renovated units: $2,200 per unit
       
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  
  Loss to lease  
  Vacancy & 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    
  Renovated units (avg.)    
  Non-renovated units (avg.)    
  Occupancy rate    
  Market rent    
  Market rent growth    
  Market rent (renovated)    
  Market rent growth (renovated)    
  NOI margin    
                                     
Debt Metrics    
  Debt service coverage ratio    
  Debt yield    
  Loan-to-cost    
                                     
Return Metrics   Total
  Return on invested capital    
  Cash-on-cash return    
  Unlevered IRR            
  Levered IRR            
  Multiple of invested capital (MOIC)            
  Equity Multiple            
                                     
Renovation Schedule
Date Units
Renovated 		                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
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?
 
                                       
                                                 
Initial Loan                                        
Select which inputs are included in the denominator of the loan-to-value ratio:
 
Purchase price                                      
 
Closing costs