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#Bigger pockets rental property evaluator how to
#Bigger pockets rental property evaluator free

The debt module is not overly sophisticated, only allowing for senior debt and not displaying monthly amortization.

The model allows for up to 34 unit types.

This multifamily financial model includes 15 tabs, of which three are input tabs, four are output tabs, two are organization tabs, and six are calculation module tabs.

A few quick notes about the model The core functionality of the model though is the same. Since recording this tutorial and as mentioned above, a few things have changed – see version notes below for complete list of changes. Nevertheless, the exercise should be more interesting and valuable this way than how I’ve done previous tutorial videos where I’ve simply walked you through the inputs and mechanics of the model.Īlso keep in mind, the video was recorded using v1.0 of the model. So take the resulting value with a big grain of salt. Keep in mind that I’m not at all familiar with the property or the sub-market, and thus many of the assumptions are made up.

#Bigger pockets rental property evaluator how to

I’ve recorded a video of how to use the model, during which I assess an actual property from Loopnet that was for sale at the time of the video. How to Use the Apartment Acquisition Model – A Video Tutorial I’ve included a the latest version of my real estate equity waterfall model, with both IRR and equity multiple hurdles, to calculate partnership level returns. The debt module is fairly simple (no monthly amortization shown), but it could be easily enhanced if such a situation warranted it. In addition, on the Expense tab the model includes a ‘Renovation/Improvement Cost’ line item for entering renovation costs.

#Bigger pockets rental property evaluator free

I’ve added several calculation modules to model free rent, releasing costs, lease-up days between leases, unit types, etc.įor value-add situations, the model has the option to enter a market rental rate different from an in-place rental rate, with an assumption that determines when rent will roll to market. The model is similar in many respects to the office/retail/industrial acquisition model, only the DCF is far more robust. I’ve also since built a version of this model that includes stochastic assumptions and a monte carlo simulation module. The project started out simple enough, but became more complex as I came to the conclusion that I needed to add several modules that are specific to apartments. Underwriting an apartment acquisition model About the Apartment Acquisition Model So if you spot a bug or have a feature request, please let me know and I’ll roll out an update. As with all of our models, this model may contain errors and certainly can be improved on. Since that time, various updates (see version notes at the end of this post) have been made, including the addition of a value-add module (in-place vs market rent), and various other enhancements and bug fixes. Removing the office/retail/industrial operating module and replacing it with an apartment operating module turned out to be a bit more work than I’d initially anticipated! But eventually, the adaptation was done and this Apartment Acquisition Model was born. I’d recently built an office, retail, and industrial valuation model, and one of our readers asked to alter the model to work with an apartment project.

This model came about more by chance than anything.

History of the Apartment Acquisition Model I recommend you look at that model instead.

However, since building this model, I’ve released a more robust alternative called the A.CRE Value-Add Apartment Acquisition Model. Note: This model is NOT compatible with Excel for Mac. office, retail, industrial modules), this is a decent model to take a look at. However, if you’re looking for a straight multifamily (apartment) acquisition model, and don’t want all of the unnecessary components of the All-in-One (ie. Our library of real estate Excel models has a variety of decent apartment models, including our All-in-One model and our Apartment Development Model – both robust models in their own right.