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Preview of Apartment/Multi-Family Building Acquisition and Individual Unit Renovation Modeling Tutorial

Lesson
Materials

Overview

In this lesson, you will learn how to model the acquisition and individual unit renovation (with continued operation) of a multi-family rental building with ground-floor retail and income-producing parking.

Instructions

Download the files from the Materials tab above. Then watch the videos, and follow along and perform the exercises in the Excel.

Video Sample

You will come to understand the risks and income generation/cost savings opportunities inherent in performing a value-add renovation program while continuing to operate the building.  Includes fully-assembled, fully-unlocked Excel file and hands-on Tutorial exercises and accompanying solutions.

Topics covered include:

  • Integration of historical property data and existing rent roll into your pro-forma
  • Modeling of future lease expirations and renewals and the individual unit renovation program
  • Modeling of operating expense savings gained from the renovation/greening of apartment units
  • Modeling of acquisition loan financing, residual equity requirement, and permanent take-out loan/refinancing
  • Constructing amortization tables and using the VLOOKUP function efficiently
  • Property Disposition modeling
  • Running of sensitivity analyses around key variables in 2-way Data Tables.

Also applies to the acquisition of distressed or foreclosed properties.

The Excel file includes the following tabs:

  • Rent Growth Variables
  • Assumptions Overview block diagram
  • Rent Roll
  • Assumptions
  • Renovation Timing
  • Cash Flow Overview block diagram
  • Monthly Cash Flow Exercise
  • Amortized Renovated Unit Losses
  • Monthly Cash Flow Solution
  • Annual Cash Flow
  • Amortization Schedule for Acquisition Loan
  • Amortization Schedule for Permanent Loan

REFM_Apt_Building_Acquisition_Modeling_Slides

REFM_Miami_Beach_Case_Study

REFM_Exercise_Apt_Building_Acquistion_Model_Tutorial_Miami_v7.0

REFM_Solution_Apt_Building_Acquistion_Model_Tutorial_Miami_v7.0