Multifamily Acquisition Model: 10 Years & Joint Venture Capable (Excel XLSX)

Recently updated to handle up to four properties at once and added a DCF Analysis with NPV (net present value) for both the Limited Partner and General Partner on a consolidated view and for each individual property.

Investing in multifamily real estate will always start with a financial model. This is an annual only template designed for pure acquisitions, the operation of a given acquisition for up to 10 years, potential refinance, and potential exit.

It has all the logic needed to plan out a joint venture with traditional Sponsor (GP) / Investor (LP) financing and distributions with an IRR Hurdle waterfall return schedule.

Assumptions Include:

•  Capital Structure
•  Purchase Price
•  CapEx -
•  % of CapEx Financed
•  Remaining CapEx to Equity Requirement
•  Pre-Purchase fees
•  Financing Amount (LTV %)
•  Equity Contribution by Sponsor / Investor
•  Initial Loan Terms (if applicable)
•  Rent Rolls

Up to 5 bedroom types, each defined by…

•  Unit count (Input)
•  Monthly Rent per Unit (Input)
•  Current Annual Rent
•  % Under market
•  Market Rent per Unit (Input)
•  Market Annual Rent
•  Year 1 Rent Increase from Current (Input)
•  New Per Unit Rent
•  Per Unit Increase Pro Forma
•  Annual Rent growth rate (per year)
•  Ancillary Income (up to 4 slots)
•  Vacancy per Year
•  Loss to Lease / Credit Loss

Starting OpEx and Yearly Growth...

•  3rd party contractors
•  Turn Over
•  Repairs & Maintenance
•  Marketing & Advertising
•  Management Fee %
•  Payroll
•  Admin / other
•  Utilities (up to 4 slots)
•  RE Taxes
•  Property Insurance
•  Reserve per unit Debt / Exit

Loan Financing Assumptions

•  Exit Cap Rate for Refi
•  LTV on Refi
•  Prepay penalty if applicable
•  Lender Fees
•  Refi year
•  Refi amortization rate
•  Interest Only Period for Initial Loan
•  Interest Only Period for Initial Loan

Exit Assumptions

•  Final Exit cap rate (selling)
•  Exit year
•  Interest Only Period for Initial Loan
•  Waterfall Distributions
•  IRR Hurdle Rates
•  Cash Distribution Splits per Hurdle

Final output report includes an annual Executive Summary showing key financial line items and investor / sponsor contributions / distributions per period. Also, there are a few switches that override the detailed income and expenses. This means if you want to do a quicker analysis, you don't have to define each of the rent rolls individually or expenses and rather just define the total rent / growth and total expenses / growth.