Multifamily Deal Analyzer

Welcome to our interactive Real Estate Deal Analyzer! This powerful tool is designed to help you quickly assess the financial viability of any potential property investment. Whether you’re a seasoned investor or just starting out, understanding the key financial metrics is crucial for making informed decisions.

Simply input your property’s details, financing terms, and projected income and expenses, and our calculator will instantly provide you with critical metrics like Net Operating Income (NOI), Cash on Cash Return (CoC), Debt Service Coverage Ratio (DSCR), and Capitalization Rate (Cap Rate). This allows you to quickly determine if a property aligns with your investment goals and assess its potential profitability.

How to Use the Calculator:

It’s super easy to get started! Just follow these steps:

1. Property & Financing Details:

• Purchase Price: Enter the total price you plan to pay for the property.
• Number of Units: Specify how many individual units the property has.
• Rentable Square Feet: Input the total rentable square footage.
• Down Payment (%): Enter your down payment as a percentage of the purchase price.
• Primary/Secondary Loan Details: Fill in the loan amount, interest rate, amortization period (in years), and any interest-only months for your primary and, if applicable, secondary mortgages.
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1. Income Details:

   • Avg. Rent Per Unit (Monthly $): Your average monthly rent per unit.

   • Physical Vacancy (%): Estimate the percentage of potential rent lost due to vacant units.

   • Concessions (Annual $): Any annual rent discounts or concessions offered to tenants.

   • Uncollectable Rents (%): The percentage of rent you expect not to collect due to defaults.

   • Loss to Lease (Annual $): Annual income lost because current rents are below market rates.

   • Non-Revenue Units (Annual $): Annual income lost from units not generating revenue (e.g., model units).

   • Utility Reimbursement (Annual $): Any income from tenants reimbursing for utilities.

   • Other Income (Annual $): Any additional income sources (e.g., laundry, parking fees).

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1. Expense Details:

   • Real Estate Taxes (Annual $): Your estimated annual property taxes.

   • Property Management Fee (%): The percentage fee paid to a property manager, based on Effective Gross Income.

   • Insurance (Annual $): Your annual property insurance costs.

   • Repairs & Maintenance (Annual $): Estimated annual costs for upkeep.

   • Utilities Expense (Annual $): Your annual cost for utilities not reimbursed by tenants.

   • General & Admin (Annual $): Annual administrative and general operating costs.

   • CAPEX Reserves (Annual $): Funds set aside annually for major capital expenditures (e.g., roof replacement).

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1. Initial Costs:

   • Acquisition Fee (%): A fee paid for acquiring the property, as a percentage of the purchase price.

   • Closing Costs (Lump Sum $): All other upfront costs associated with closing the deal.

      

   • Earnest Money Deposit ($): The initial deposit made to show serious intent (often part of your down payment).

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As you adjust the input values, the Purchase Analysis, Income Summary, Expense Summary, Financing Summary, and Key Deal Metrics will automatically update, giving you real-time insights into your potential deal!

Go ahead and give it a whirl! It’s a fantastic way to quickly screen properties and narrow down your options.