Real Estate Proforma - Value-Add Apartment Acquisition Model (Excel XLSM)

BENEFITS OF DOCUMENT

1. Comprehensive Model for Multifamily Value-Add Deals: Analyze Cash Flow, ROI, Financing, and Renovation Impacts for Optimal Investment

DESCRIPTION

This product (Real Estate Proforma - Value-Add Apartment Acquisition Model) is an Excel template (XLSM), which you can download immediately upon purchase.

This multifamily apartment value-added real estate model is a sophisticated Excel-based analytical tool designed for in-depth financial analysis of multifamily real estate investments. It's precious for investments focusing on value-add strategies, offering a comprehensive approach to evaluating profitability and risk.

 Highlights:

•  Dynamic Loan Sizing: Incorporates features to size the refinance loan using Loan-to-Value (LTV), Debt Service Coverage Ratio (DSCR), and Debt Yield, allowing for a more precise and tailored approach to financing.

•  Individual Unit Data Input: The model enables the input of specific data for each unit, such as lease terms, anticipated renovation costs, and projected rent increases, ensuring a detailed and granular analysis.

•  User-Friendly Interface: Designed to focus on user-friendliness, the model allows for easy and intuitive data entry and manipulation, even for users with limited technical expertise.

•  Sensitivity Analysis Table: Includes a sensitivity table that provides insights into the optimal sizing of the deal, considering various financial metrics and market conditions.

•  Comprehensive Reserve Account Management: Features the ability to account for reserve accounts, including interest reserves, renovation expenses, and capital expenditures for common areas, providing a more holistic view of the investment's financial health.

•  In-depth Rental Income Projections: Advanced rental income projections, considering market dynamics, occupancy rates, and the impact of renovations.

Instructions 

The user must only input information into the cells formatted in dark blue font in the Assumptions and Budget sheets. If a cell is colored black, it contains a formula.
All inputs in the model are formatted in blue type. If an input has a suffix or prefix such as "/month," "Year," or "SFT," the numeric value should be entered without re-typing the text suffix. Re-typing the text suffix could corrupt the calculations or crash the model.
The template includes information from a hypothetical property for demonstration purposes, which should be erased for a real property valuation.
The template is set with the iterative calculation mode active and automatic calculation, except for data tables, which are only updated after saving the workbook.
The investment summary sheet provides an overview of the property based on several key metrics and a printable report suitable for presentations.
Most of the drivers are inputted in the Dashboard sheet. Additionally, the user must input data in Reno and Rent Roll Sheets. All other sheets are engines resulting from the inputs of the above-mentioned sheets 
The maximum horizon for this model is ten (10) years.

This model provides a robust framework for assessing potential returns on value-add apartment acquisitions, integrating detailed financial projections with renovation schedules. It empowers users to make informed decisions by visualizing cash flows and understanding the impact of various renovation strategies on overall profitability.

Source: Best Practices in Integrated Financial Model, Real Estate Excel: Real Estate Proforma - Value-Add Apartment Acquisition Model Excel (XLSM) Spreadsheet, Jair Almeida