MULTIFAMILY PROPERTY ANALYZER

SYNOPSIS
Real estate can be a wonderful investment if you find the right property at the right price. Th
spreadsheet walks you through every aspect of the deal to help you learn whether the
proposal looks right for you. The spreadsheet considers income, expenses, acquisition cos
and mortgage expenses. Then, using your preferred exit strategy, shows you your monthly
cash flows and total rates of return.
Errors and omissions liability (E&O): You Exec LLC makes no guarantee that the fomulas, models, analysis, financial projections, estimates, graphs, reports
numbers, and any derivatives sourcing from this model are free of errors and omissions. Our financial modelers have audited this model to the best of their
capabilities, yet You Exec LLC assumes no liability for erronous outcomes derived from this financial model.

Copyright © You Exec LLC. All rights reserved.

TABLE OF CONTENTS

Sheet 1

Sheet 2

Sheet 3

Sheet 4

Sheet 5

Sheet 6

COLOR KEY
Types
User inputs
Calculations
Results
Good results
Bad results
References

Headers
Header
Sub-header
Title
Sub-title

Styles
Grid not shown
Synopsis

Table of contents

Analysis
Compare the marketing package with your own estimates

Strategy
Multi-year projection of income, expense, and profits

Returns
Multi-year projection of income, expense, and profits

Charts
See a multi-year view of assets, liabilities, income, and expenses

Example Description
$3,400 Enter your values where you see blue fields
 $3,400 Calculations from existing sheet
$3,400 Analysis and results of calculations
$3,400 Favorable outcomes
$3,400 Unfavorable outcomes
$3,400 References to other sheets

Example
SOME TITLE
SOME TITLE
Title
Some sub-title
and expenses
 Summary Analysis

Model to use Final 3

Seller Estimate Final
Acquisition Metrics Actual Target Year 5 details Actual Target
Price $ 1,825,000 $ 1,436,000 $ 1,567,000 Debt service coverage ratio 1.9 1.5 NOI $ 14,137 $ -
Units 28 28 28 CAP rate 10.0% 9.0% Forecasted property value $ 1,696,171 $ -
Price per unit $ 65,179 $ 51,286 $ 55,964 Simple cash on cash return 16.4% 8.0% Sum of cash flows $ 413,596 $ -
Downpayment 30% 25% 25% ROI (compounded annually) 19.7% 12.0% Principal paydown $ 138,410 $ -
(in dollars) $ 547,500 $ 359,000 $ 391,750
Mortgage amount $ 1,277,500 $ 1,077,000 $ 1,175,250 Unit sizes and rates For calculating future returns
Interest rate 5.00% 4.75% 4.75% Size Num Current Market Total Inflation rate 2.0%
Term (yrs) 30 25 25 1 BR 6 $ 819 $ 925 $ 4,914
Monthly payment $ 6,858 $ 6,140 $ 6,700 2 BR 22 $ 897 $ 1,050 $ 19,734
Closing costs $ 65,325 $ 75,000 $ 75,000 3 BR - $ - $ - $ -
Total capital needed $ 612,825 $ 434,000 $ 466,750 Total 28 $ 24,648 $ 28,650 $ 24,648

Income Current
Rental income $ 24,648 $ 24,648 $ 26,000
Other income $ 352 $ 352 $ 500
less vacancy 3.0% 8.0% 6.0%
less concessions, losses 0.0% 2.0% 1.0%
Net income $24,258 $22,535 $24,680
(annually) $291,090 $270,422 $296,160

Expenses Std rates Standard rates for expenses

Property management 5.0% 8.0% 8.0% Property management 8.0% of monthly rents
Taxes $ 1,866 $ 1,556 $ 1,866 Taxes 1.3% of property price
Insurance $ 651 $ 840 $ 840 Insurance $ 30 per unit per month
Water, gas, electric $ 3,379 $ 3,640 $ 2,940 Water $ 35 per unit per month
Trash, snow, landscaping $ 283 $ 420 $ 420 Gas $ 70 per unit per month
Repairs and cleaning $ 417 $ 700 $ 700 Electric $ 25 per unit per month
General and administrative $ 375 $ 493 $ 493 Trash $ 5 per unit per month
Payroll $ 500 $ 493 $ 493 Snow $ 5 per unit per month
Reserve for future capex $ 333 $ 493 $ 493 Landscaping $ 5 per unit per month
Other $ 125 $ 1,400 $ 1,400 Repairs and cleaning $ 25 per unit per month
Total expenses $ 9,129 $ 11,837 $ 11,619 General and admin 2.0% of monthly rents
(annually) $ 109,552 $ 142,048 $ 139,433 Payroll 2.0% of monthly rents
Reserve for CapEx 2.0% of monthly rents
Net operating income $ 15,128 $ 10,698 $ 13,061 Other $ 50 per unit per month
(annually) $ 181,538 $ 128,374 $ 156,727
less debt service $ 6,858 $ 6,140 $ 6,700
less other expense $ - $ - $ -
Profit after debt service $ 8,270 $ 4,558 $ 6,360
(annually) $ 99,244 $ 54,692 $ 76,324

Cap rates
Based on NOI above 9.9% 8.9% 10.0%
at lower rate 8.0% $ 2,269,229 $ 1,604,676 $ 1,959,090
at market rate 9.0% $ 2,017,092 $ 1,426,378 $ 1,741,413
at higher rate 10.0% $ 1,815,383 $ 1,283,740 $ 1,567,272

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 Strategic considerations

Acquisition costs Final Renovation Strategy

Price $ 1,567,000 Renovations Avg Rents
Units 28 Size Num Spend Year Current Market Ours
Price per unit $ 55,964 1 bedroom 6 $ 4,000 1 $ 819 $ 925 $ 950
Downpayment (%) 25% 2 bedroom 22 $ 8,000 2 $ 897 $ 1,050 $ 1,100
Downpayment ($) $ 391,750 3 bedroom 0 $ - 0 $ - $ - $ -
Closing costs $ 75,000 Total 28 $ 200,000 $ 24,648 $ 28,650 $ 29,900
Reserves $ 200,000
Cash needed to close $ 666,750

Financial Strategy
Exit strategy Refinance New mortgage terms
Type of exit Refinance 0 Appraised value at exit $ 1,949,702 Mortgage amount $ 1,559,762
Year of exit 5 LTV ratio 80% Interest rate 5.25%
Cap rate at exit 10.5% Cost to refinance 2.0% Term (yrs) 25
NOI at exit (Returns tab) $ 212,989 Loan balance to pay off $ 1,036,840 Monthly payment $ 9,347
Forecasted value at exit $ 2,028,470 Equity cashed out at close $ 491,726

Returns
Final results Metrics Total Average CAGR Goal
Cash flow distributions $ 560,960 CAP rate 10.9% 7.5%
Return of reserves $ 30,787 Complete Cash on Cash 3 45.6% 15.2% 8.0%
Equity received $ 491,726 Complete ROI (Returns) 62.5% 20.8% 17.6% 12.0%
less cash to close $ (666,750) Internal rate of return 33.9%
Net profit $ 416,723

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 Detailed annual returns

Inflation 2.0% 1 Year

0 1 2 3 4 5 6 7 8 9 10
Income Final Exit
Rental income $ 26,000 $ 26,000 $ 29,376 $ 31,108 $ 31,730 $ 32,365 #N/A #N/A #N/A #N/A #N/A
Override

Other income $ 500 $ 500 $ 510 $ 520 $ 531 $ 541 $ - $ - $ - $ - $ -

less vacancy $ (1,560) Rents $ (1,560) $ (1,763) $ (1,866) $ (1,904) $ (1,942) $ - $ - $ - $ - $ -
less concessions, losses $ (260) Rents $ (260) $ (294) $ (311) $ (317) $ (324) $ - $ - $ - $ - $ -
Net income (monthly) $ 24,680 $ 24,680 $ 27,830 $ 29,451 $ 30,040 $ 30,640 #N/A #N/A #N/A #N/A #N/A
Net income (annual) $ 296,160 $ 296,160 $ 333,956 $ 353,407 $ 360,475 $ 367,685 #N/A #N/A #N/A #N/A #N/A

Operating expense
Property management $ 1,974 Rents $ 1,974 $ 2,226 $ 2,356 $ 2,403 $ 2,451 $ - $ - $ - $ - $ -
Taxes $ 1,866 $ 1,866 $ 1,903 $ 1,941 $ 1,980 $ 2,020 $ - $ - $ - $ - $ -
Insurance $ 840 $ 840 $ 857 $ 874 $ 891 $ 909 $ - $ - $ - $ - $ -
Water, gas, electric $ 2,940 $ 2,940 $ 2,999 $ 3,059 $ 3,120 $ 3,182 $ - $ - $ - $ - $ -
Trash, snow, landscaping $ 420 $ 420 $ 428 $ 437 $ 446 $ 455 $ - $ - $ - $ - $ -
Repairs and cleaning $ 700 $ 700 $ 714 $ 728 $ 743 $ 758 $ - $ - $ - $ - $ -
General and administrative $ 493 $ 493 $ 503 $ 513 $ 523 $ 534 $ - $ - $ - $ - $ -
Payroll $ 493 $ 493 $ 503 $ 513 $ 523 $ 534 $ - $ - $ - $ - $ -
Reserve for future capex $ 493 $ 493 $ 503 $ 513 $ 523 $ 534 $ - $ - $ - $ - $ -
Other $ 1,400 $ 1,400 $ 1,428 $ 1,457 $ 1,486 $ 1,515 $ - $ - $ - $ - $ -
Net expense (monthly) $ 11,619 $ 11,619 $ 12,064 $ 12,391 $ 12,639 $ 12,891 $ - $ - $ - $ - $ -
Net expense (annual) $ 139,433 $ 139,433 $ 144,771 $ 148,688 $ 151,662 $ 154,695 $ - $ - $ - $ - $ -

NOI (annual) $ 156,727 $ 156,727 $ 189,185 $ 204,719 $ 208,813 $ 212,989 #N/A #N/A #N/A #N/A #N/A
Debt service (annual) $ 82,295 $ 82,295 $ 82,295 $ 82,295 $ 82,295 $ 82,295 $ - $ - $ - $ - $ -
Profit (annual) $ 74,432 $ 74,432 $ 106,890 $ 122,424 $ 126,518 $ 130,695 #N/A #N/A #N/A #N/A #N/A
Profit (cumulative) $ 74,432 $ 181,323 $ 303,747 $ 430,265 $ 560,960 #N/A #N/A #N/A #N/A #N/A

Capital expense (annual)

Transfers in $ 200,000 $ 5,916 $ 6,034 $ 6,155 $ 6,278 $ 6,404 $ - $ - $ - $ - $ -
Paid out $ 24,000 $ 176,000 $ - $ - $ - $ - $ - $ - $ - $ -
Capital reserves $ 181,916 $ 11,950 $ 18,105 $ 24,383 $ 30,787 #N/A #N/A #N/A #N/A #N/A

Principal accumulation $ 13 $ 24
Sum of yearly principal pmts $ 391,750 $ 25,122 $ 26,341 $ 27,620 $ 28,961 $ 30,367 $ - $ - $ - $ - $ -
Downpayment + principal pd $ 416,872 $ 443,213 $ 470,833 $ 499,793 $ 530,160 $ - $ - $ - $ - $ -
Remaining balance $ 1,175,250 $ 1,150,128 $ 1,123,787 $ 1,096,167 $ 1,067,207 $ 1,036,840 #N/A #N/A #N/A #N/A #N/A

Exit costs $ - $ - $ - $ - $ 31,195 $ - $ - $ - $ - $ -

Cumulative cash flow $ (466,750) $ 74,432 $ 106,890 $ 122,424 $ 126,518 $ 1,121,917 #N/A #N/A #N/A #N/A #N/A
Estimated property value $ 1,567,000 $ 1,551,541 $ 1,854,564 $ 1,987,427 $ 2,007,752 $ 2,028,470 #N/A #N/A #N/A #N/A #N/A

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