Multifamily Underwriting Model for Acquisitions
A free Excel multifamily underwriting model that screens a stabilized or value-add acquisition. It runs from the T12 and unit mix through renovation capex, acquisition and permanent financing, a two-tier GP and JV partner waterfall, and returns by party, so you can decide quickly whether a deal deserves a full underwrite.
What’s inside
Model Features
T12 and Unit Mix
Start from the trailing twelve months and up to twenty unit types, each with its own count and in-place rent.
Renovation Premiums
Flag which unit types get renovated, set the rent premium and the year it starts, and the rent roll steps up on schedule.
Full Operating Statement
Vacancy, bad debt, concessions, other income, utility reimbursement and every major expense line, with separate growth rates and a property tax reassessment year.
Capex and Reserves
Unit and general capex budgets with start dates and durations, a capex reserve schedule and an optional capex funding facility.
Acquisition and Permanent Financing
An acquisition loan, optional seller financing, and a permanent loan sized to the lowest of the DSCR, debt yield and LTV constraints.
Two-Tier Waterfall
A preferred return followed by a residual split between the LP and the GP entity, with the GP side broken out between the operating partner and a JV partner.
GP Fees
Acquisition, general contractor, asset management, refinancing and disposition fees, shared between the operating partner and the JV partner.
Sources and Uses
Initial and future equity by party, debt proceeds, closing costs and fees in one table.
Returns by Party
Unlevered and levered IRR, equity multiple and profit, gross and net of fees, for the LP, the operating partner and the JV partner.
Live Excel Formulas
Nothing is hardcoded or locked. Every cell is traceable.
When to use it
What a Screener Is For
A screener answers one question fast: is this deal worth a full underwrite? Drop in the T12, the unit mix and your financing terms, and within minutes you can see whether the returns hold up at the asking price and what has to be true for them to work.
It is not a substitute for a full underwrite. A deal headed to investment committee needs a unit-level rent roll, a renovation and lease-up schedule, refinancing scenarios and the exact waterfall in your operating agreement. If your structure needs more distribution tiers, see the 4-Tier IRR GP Catch-Up Waterfall or the 5-Tier IRR-EM Hybrid Waterfall.
How it works
How to Underwrite a Multifamily Acquisition with This Model
- 01
Enter the T12 and Unit Mix
Trailing twelve-month income and expenses, plus unit types, counts and in-place rents.
- 02
Set the Business Plan
Renovation scope and rent premiums by unit type, capex budgets and reserves, and growth rates for income and expenses.
- 03
Size the Debt
Acquisition loan terms and a permanent loan sized to the tightest of DSCR, debt yield and LTV.
- 04
Set the Equity Terms
Preferred return, residual split and the operating partner and JV partner split of the GP entity, plus GP fees.
- 05
Read the Returns
Levered and unlevered IRR, equity multiple and profit for the LP, the operating partner and the JV partner, gross and net of fees.
Because the purchase price, rents and financing are all inputs, you can test what price the deal works at before spending time on a full underwrite.
Who it’s for
Who Uses This Model
CRE firms, developers and multifamily operators screening deals from brokers, acquisitions analysts building a first pass for investment committee, and JV partners checking a GP’s numbers before committing equity.
Questions
Frequently Asked Questions
What is a multifamily underwriting model?
A multifamily underwriting model projects an apartment property's income, expenses, capital needs, debt and equity returns to decide what a buyer can pay and whether the deal meets its return targets. It typically starts from the T12, the rent roll and the business plan.
What is the difference between a screener and a full underwrite?
A screener answers whether a deal is worth pursuing, quickly and from summary inputs. A full underwrite adds a unit-level rent roll, a detailed renovation and lease-up schedule, refinancing scenarios and the exact waterfall in the operating agreement, and is what goes to investment committee.
Does the model work for value-add deals?
Yes. You can flag which unit types are renovated, set the rent premium and start year for each, and add unit and general capex budgets and a capex funding facility.
Is this multifamily acquisition model really free?
Yes. Enter your name and email and the Excel template downloads with live formulas. Nothing is locked or hardcoded.
Can Reina Property Group underwrite a deal for us?
Yes. RPG's investment team underwrites multifamily and other acquisitions for CRE firms, from first screen through investment committee memo and closing.
Custom models
Need a Full Underwrite?
When a deal clears the screen, Reina Property Group's investment team can take it the rest of the way: a full model, due diligence and an investment committee memo. See our acquisition underwriting services and real estate financial modeling services. More free templates are in the model library.
Free download
Download the Model
Enter your name and email below and the Excel file is yours. Live formulas, nothing locked.