Multifamily Property Analyzer
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Real estate can be a great addition to your investment portfolio. But as with any investment, you have to buy right. This spreadsheet can help you do that by analyzing the income, expenses, and debt service associated with a property. Use it to predict your long term cash flows, and use that information to decide whether the deal is right for you and if so, what price you afford to pay.
By carefully comparing the seller’s proposal with your own model of how income and expenses should change over time, you can zero in on your expected returns and successfully negotiate a purchase price that will work for you.
The Analysis tab is where you first start to look in depth at a deal. On this tab, we will develop three views, or models, of how this property might perform. The Seller has their point of view, which includes asking price, rents, expenses, and what type of loan you might use for your purchase. You’ll have your own initial point of view, based solely on your research into what the rents and expenses should be in this area. And then there will be a final view, which you will develop and change over and over if you decide to enter into negotiations. The Strategy tab allows you to develop a plan for renovating some of the units over time with the hope of bringing in additional rents. It will also allow you to specify your financial strategy. Will you refinance after a few years and hold the property or sell it? The Returns tab shows how your expenses, loan balance, and property value change over time. And the Charts tab shows many of the same metrics visually instead of in table format.