Analyzing a Multifamily Deal Data Construction

• Projection 3 - 10 years

• Standardized underwriting model

• based on facts and qual. assumptions

• manual inputs drive dynamic outputs

• 
  

• Current rent roll

  • Vacancy

• Historical operating expneses

• Property tax information

• Operating assumptions

  • Revenue assumptions

  • expense aussumptions

• capital cost assumptions

• debt assumptions

• equity assumptions

• sale assumptions

—> educated guess

• industry database

  • yardi matrix

  • axiometrics

  • real capital analytics

  • CBRE econometric advisors

• Brokerage firm reasearch

• Broker / seller insight

• Industry experience

• Property specific opertaional history

• Renovations assumptions

  • Timing

  • can take a long time renovating all units

• market rent growth

  • organic rent grwoth in the near environment and in the future in general

• physical vacancy

  • T 12 come into play

• credit loss

• property tax reassesments

• assessed value grwoth

• annual expense growth

• property management fee

• General construction cost

• Capital expense reserves

• Loan Amount

• Interest rate

• Interest only period

• Loan fees

• Amortization

• term

• refinance assumptions

• hold period

• sale price

  • Exit Cap Rate

    • Applied to next buyers year 1 NOI

  • Cap Rate Expansions

    • 5-10 basis points / year