multi-family investment financial model
Used to label exports. This will name your .xlsx file.
Evaluate the investment potential of this multi-family property. Check each item that applies.
Assess the market context and building classification.
Walk-Up Class B properties typically close in 45-60 days. Standard financing available.
Define your unit count and estimate renovation costs.
Estimate rental income across all units. Check local listings for comparable rents.
A complete 10-year discounted cash flowDCF: a method to value an investment based on its expected future cash flows, adjusted for the time value of money. projection for your multi-family investment.
This table tracks your annual income flow from gross rent down to cash in your pocket after mortgage payments. It answers: "how much money am I making each year?"
| Year | GPRGross potential rent: the total rent you'd collect if every unit was occupied all year. | Vacancy | EGIEffective gross income: GPR minus vacancy. | OpEx | NOINet operating income: the money left after paying all operating expenses, but before mortgage payments. | Debt Service | Cash Flow |
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This table shows the wealth-building side: how your equity grows through loan paydown and property appreciation, plus what you'd walk away with if you sold. It answers: "how much am I worth?"
| Year | NOI | Debt Service | Principal Paid | Interest Paid | Levered CFLevered cash flow: the cash left after paying all operating expenses and debt service. This is the actual money in your pocket each year. | Property Value | Loan Balance | Equity |
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Key metrics to evaluate your multi-family investment. Hover over any term to learn what it means.
Plain-English explanations for every financial and real estate term used in this model.
A schedule listing each unit's tenant, lease terms, and current rent.
Trailing 12-month operating statement showing actual income and expenses.
Investment strategy to buy underperforming properties, improve them, and increase value.
The combination of different unit types (studios, 1BR, 2BR, etc.) in a multi-family property.
Money set aside for major capital expenditures like roofs, HVAC, and parking lot repaving.
Net operating income: rent collected minus operating expenses. Does not include mortgage payments.
Capitalization rate: year 1 NOI divided by purchase price. A quick measure of a property's yield without leverage.
Debt service coverage ratio: NOI divided by annual mortgage. Banks want 1.25x or higher. Below 1.0x means rent doesn't cover the mortgage.
Internal rate of return: your annualized return including all cash flows and the sale. The "true" return metric.
Net present value: sum of all future cash flows, discounted to today's dollars, minus what you invested.
Multiple on invested capital: total cash back divided by total cash in. 2.0x means you doubled your money.
Gross potential rent: the max rent if all units are occupied 100% of the time.
Effective gross income: GPR minus vacancy. The realistic income number.
Loan-to-value: the percentage of property value the bank lends. 75% LTV means a 25% down payment.
Discounted cash flow: a valuation method based on projected future cash flows adjusted for time value of money.
Paying off a loan over time with regular payments. A 30-year amortization means 360 monthly payments.
A tax deduction for the "wear and tear" on a building. Residential property uses 27.5 years straight-line on the building (not land).
Capital expenditures: big-ticket items like a new roof, HVAC, or appliances. Not day-to-day maintenance.
Operating expenses: the recurring costs to run the property, including management, maintenance, taxes, insurance, and reserves.
The percentage of time your unit sits empty between tenants. 5% is roughly 2.5 weeks per year vacant.
Annual pre-tax cash flow divided by total cash you invested. Shows what your actual dollars earn each year.