Underwriting model · Multifamily value-add

Value-add deal analyzer

A monthly model of a renovate-and-refinance business plan: turnover- and buyout-driven renovation schedule, line-item operating expenses, floating-rate bridge debt with a rate cap, DSCR-constrained refinance, exit, GP fees, a two-tier LP/GP promote, and a 1,000-path risk simulation. Every chart updates as you change the assumptions. Inputs are an illustrative example, not a real deal.

Base case: an illustrative 24-unit value-add renovation.
Levered IRR
Equity multiple
Unlevered IRR
Yield on cost
Peak equity
LP net IRR
IC summary

Equity cash flows

Annual contributions and distributions to equity, with the cumulative position. The trough is peak equity at risk; the line crossing zero is the payback year.

Equity inOperationsRefinanceSaleCumulative

Renovation & lease-up

Units by status each month. Classic units turn over naturally or through buyouts, then queue for renovation.

RenovatedVacant or offlineClassic

Value creation

All-in basis built up, then the value created at exit.

Exit timing

Levered IRR and multiple by exit year, holding everything else constant. Click a year to set the hold.

Risk simulation

1,000 runs that vary renovated rent, renovation cost, rent growth, the SOFR path, and the exit cap around your assumptions.

Sensitivity

Levered IRR by exit cap rate and renovated rent. Outlined cells meet the target return; underlined is the current case. Click any cell to apply it.

Distribution waterfall

Capital returnedLP profitGP pro-rata profitGP promoteGP fees

Annual pro forma

Operating years shown on a cash basis. Year 1 begins at closing.

Model notes: monthly periods. Classic units vacate through natural turnover and tenant buyouts, queue for renovation up to the monthly capacity, and return leased at the renovated rent after the offline period. Property taxes are the tax rate times the assessed value (set as a share of the purchase price), grown with expenses. The bridge loan is SOFR plus a spread with SOFR capped at the strike; it funds its loan-to-cost share of the purchase and of each renovation draw, interest-only, and operating shortfalls are funded by equity. The refinance is sized at the lower of the LTV and DSCR constraints on trailing-three-month NOI, annualized, with a 1% cost. Sale value is forward twelve-month NOI over the exit cap. GP fees are paid from deal cash flow; the promote is an IRR-hurdle waterfall measured on LP cash flows. The risk simulation uses a fixed random seed, so results are repeatable. Built by Michael C. Garcia.