Multifamily

Video Walkthrough

---

Underwrite This Deal

Ready to get this model built for your deal? View pricing and engagement options →

---

Documentation

For general modeling conventions (color coding, check system, change log, Wizard sheet), see Modeling Standards →

The documentation below covers specifics for this template.

---

Overview

This model underwrites multifamily single-asset acquisitions with two optional modules:

Optional Feature 1: Value-Add Renovations Model unit-by-unit renovation costs, timing, and rent bumps. Toggle off for stabilized acquisitions.

Optional Feature 2: Mixed-Use Commercial Add retail or office tenants with lease-by-lease detail. Toggle off for pure residential deals.

Both features can be enabled or disabled without breaking the model. Zero out the inputs you don't need.

---

Model Architecture

Data flow: Summary (Inputs) → RR Input → Operating → Cash Flow → Waterfall → Summary (Outputs)

---

Summary Sheet

The Summary sheet is your dashboard. Everything important surfaces here, and most key assumptions can be changed directly on this sheet.

---

Purchase & Sale Assumptions

Property Information

Purchase

Exit Summary

You can set different exit timing and cap rates for residential vs. commercial components, or use the Global column to link them together. The Global column aggregates both components for total property-level metrics.

---

Sources & Uses and Returns

Uses

Sources

Returns display at multiple levels: Unlevered, Levered, GP Net, LP Net.

---

Debt Assumptions

Initial Loan

Loan Terms

Refi Loan (optional)

The model automatically takes the more conservative of LTV or DSCR constraints for refinancing proceeds.

---

Waterfall Assumptions

How it works:

1. Preferred Return: LP receives distributions until reaching the first hurdle (e.g., 12% IRR). GP participates pro-rata based on co-invest.

2. Tier 1: After first hurdle, GP receives additional promote. Split shifts (e.g., 80/20 LP/GP) until second hurdle.

3. Thereafter: After final hurdle (e.g., 20% IRR), split shifts to final promote (e.g., 70/30 LP/GP).

GP co-invest percentage affects participation in preferred return tier. All parameters configurable on Waterfall sheet.

---

Operating Assumptions

Summary-level operating metrics that link to the Operating sheet:

Capital Expenditures Reserve

"Fund as you go" toggle determines whether CapEx is pre-funded at close or funded from operations as incurred.

---

Returns Sensitivity

The sensitivity table shows returns across a range of purchase prices:

The sensitivity table has its own inputs for the purchase price range. Use it to stress-test your deal across scenarios.

---

Operating Sheet

The Operating sheet controls your residential NOI assumptions and growth rate forecasts.

What's controlled elsewhere:

• Rent roll and unit-level rents → RR Input sheet
• Commercial lease details → RR Input sheet

---

Net Operating Income Inputs (Year 1)

These are your Year 1 income and expense inputs. The T-12 column is shown for reference—you can populate it with trailing twelve-month actuals, a budget, lender financials, or any other basis that makes sense for your deal.

Other Income

Residential Expenses

---

Growth Rate and Margin Forecast Inputs

Year-by-year growth rates for projecting income and expenses through the hold period. Each year (Y1–Y11) has its own input column, so you can vary assumptions year by year.

Residential Income Growth Rates

Residential Expense Growth Rates

---

Commercial Operating Assumptions

---

RR Input Sheet

The Rent Roll Input sheet controls your unit mix, renovation schedule, and commercial leases.

---

Residential Unit Mix

Each row represents a sub-unit type. The model is flexible—you can have a line for every individual unit, group similar units together at a higher level, or even use a single line for a quick back-of-envelope underwrite.

Unit Type vs. Sub-Unit Type: Unit Type is a broad category for grouping (e.g., "1x1", "2x2", "Studio"). Sub-Unit Type is the specific line item (e.g., "1x1 - AMMA2", "1x1 - AMMA3"). This lets you have multiple variations of 1-bedrooms while still rolling them up to a single "1x1" category.

Turning off value-add: To model a stabilized acquisition without renovations:

1. Set "Already Reno'd" equal to the total number of units for each sub-type (so "Units Not Yet Reno'd" is zero)
2. Set Reno per Unit $ to $0
3. Set Post-Reno Rent equal to Pre-Reno Rent

The Cash Flow sheet will show $0 for Resi CapEx and rents will grow only at your projected growth rate.

---

Building General Renovation

Below the unit mix table is a separate input for building-level capital expenditures:

This is for property-wide improvements (common areas, exterior, systems) separate from unit-level renovations. The budget is spent evenly over the input duration, timed alongside your unit renovation schedule.

---

Commercial Leases

Each row represents one commercial tenant:

Formula inputs: Blue cells accept formulas, not just typed values. For TI, you can enter =75*[SF cell] instead of calculating manually.

Turning off commercial: To model a pure residential deal:

1. Set all SF values to 0
2. Set TI and LC to 0

Don't delete the rows unless working with us—formulas reference these cells even when zeroed out.

---

Cash Flow Sheet

Monthly cash flows for the full hold period, with annual summaries.

Unlevered Section:

The top portion calculates property-level cash flows before debt. Residential and commercial NOI flow from your Operating and RR Input assumptions, capital events (acquisition, CapEx, TI/LC, exit) are driven by Summary sheet inputs, and everything layers together to arrive at Total Unlevered Cash Flow.

Levered Section (Debt Service):

Returns displayed:

• UIRR, UMoC, UProfit (Unlevered)
• LIRR, LMoC, LProfit (Levered)

This sheet flows into the Waterfall for GP/LP splits.

---

Waterfall Sheet

The Waterfall sheet shows annual cash flow distributions between GP and LP.

What's here:

• Annual cash flows from Cash Flow sheet
• Cumulative distributions by tier
• Hurdle tracking (when each hurdle is met)
• GP promote calculations
• Final GP Net and LP Net returns

Monthly detail: While the Waterfall sheet shows annual summaries, underlying calculations run monthly. This is standard for institutional models—monthly precision, annual presentation.

Customization: All waterfall parameters (hurdles, promotes, GP co-invest) are controlled on this sheet and flow to the Summary.

---

Common Workflows

Changing purchase price:

1. Go to Summary sheet
2. Change Purchase Price Input (blue cell, ~row 13)
3. Press F9 to refresh
4. Review updated returns in Sources & Uses section

Running a quick sensitivity:

1. Summary sheet → Returns Sensitivity table
2. Find your target purchase price row
3. Read across for cap rates, cash-on-cash, IRR, price/SF, price/unit

Updating for a new deal:

1. Start with Summary sheet inputs
2. Update RR Input for your specific unit mix and leases
3. Adjust Operating sheet expenses to match actuals
4. Press F9 and verify checks are clear
5. Log your baseline in Change Log

Turning off value-add module:

1. RR Input → Set all units to "Already Renovated = Yes"
2. Set Reno Cost per Unit to $0
3. Set Post-Reno Rent = Pre-Reno Rent
4. Press F9

Turning off commercial module:

1. RR Input → Set all commercial SF to 0
2. Set TI and LC to 0
3. Press F9

---

Looking for detail-oriented and reliable Multifamily Excel-based financial modeling to underwrite your next commercial real estate deal? View pricing and engagement options →

---

SKU: MF-ACQ-SA-VAO-MU