Single Family Residential Property Investment Model (Excel XLSX)

A single-family residential property investment (buy, hold, sell) is a real estate strategy where an investor purchases a standalone home, holds it for a period to generate rental income, and eventually sells it for a profit. The investor focuses on selecting properties in desirable locations with strong appreciation potential, maintaining the property to attract reliable tenants, and monitoring market conditions for an optimal selling opportunity. This strategy provides passive income during the holding period and capital gains upon sale, making it a popular choice for building wealth.

This Financial model presents n investment scenario for a Single Family Residential Property where the property is purchased, then rented for several months, and is finally sold. The model contains the basic elements required to determine a range of possible IRR returns to an investor, given a high-level set of assumptions about the asset's operating forecasts, leverage, and exit price.

Model Structure

•  General Setup & Acquisition Inputs
Investment-related inputs including Property Metrics, Timing, Acquisition and Sale Assumptions, Renovation Budget, Rental & Opex Assumptions and Financing through Equity and 2 Loan types.

•  Debt Schedules
Amortization Schedules for the 2 types of loans provided in the model (Acquisition and Refinancing Loan)

•  Monthly Cash Flow
Monthly CF presents all the operating cash flows of the property over monthly periods. It allows users to control the timing and how the cash flows over that time.

•  Annual Cash Flow
A roll-up of the monthly cash flows into annual periods from property acquisition to disposition.

•  Project Returns
Report presenting project unlevered and levered returns (Pre-Tax & After-Tax IRR, MOIC, Cash Outflows, Inflows and Profits)

•  Investors' Returns Waterfall
A 2-tier IRR hurdle waterfall model to distribute proceeds between investors. The first tier distributes cash flow to the partners until the LP has achieved some defined preferred return and received a full return of capital. Assuming the preferred return hurdle is hit in tier one, cash flow is distributed in tier two based on a defined profit share percentage.

•  Investment Summary:

A high-level summary of the project key info, including:

•  Key Project Metrics (Property Size, Acquisition and Exit Yield, Net Investment Profit, CoC Return)
•  Uses & Sources of Cash
•  Operations Summary (Gross Revenue, Net Operating Income, Net Cash Flow)
•  Property Sale and Project Level Return Metrics (Unlevered & Levered)
•  Partnership Level Return Summary (LP's & GP's)
•  Dashboard

Detailed instructions for the use of the model are included in the Excel file.

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