Spreadsheet To Assess Multifamily Building?

My partner is interested in a couple of multifamily buildings - a 8 unit (2bd/1ba) and a 14 unit (1bd/1ba).

Both buildings are currently vacant and need rehab so I cannot use the usual methods for assessing whether they are good deals or not.

Does anyone have any spreadsheets or care to share their methods of deciding whether to purchase or not.

Comments(7)

  • NewKidInTown316th November, 2008

    Quote:On 2008-09-02 23:52, keitachan wrote:
    Both buildings are currently vacant and need rehab so I cannot use the usual methods for assessing whether they are good deals or not.What are the "usual" methods you would use and why are they not valid when applied to these properties?

  • cjmazur22nd March, 2009

    I bought "OnTarget" and found it to be reasonable.

  • Zoltan22nd March, 2009

    try CREmodel

  • jstrishak0079th April, 2009

    Create a 5 year forecast, including the cost of renovations, loss of rents, the rental rates and expenses when stabilized. It will generate a return. If the return is what your investors would consider, you might have a deal.

    CCIM has a 5 year forescast spreadsheet free of charge.

    Best,
    jon.

    Contact info deleted

    John (LV)
    TCI Moderator[ Edited by jfmlv1950 on Date 04/09/2009 ]

  • jstrishak00710th April, 2009

    commercialking,

    Good points.
    I agree that you should be developing your own analysis. I used a 5 year forecast because my holding period is generally 5-7 years and need this to present the deal to investors. This helps forecast the cash-on-cash and IRRs over the period.

    Best,
    jon.

  • cjmazur4th June, 2009

    I would look at the market in which the the properties are located, and see if affordable/disable/senior units big be financially advantageous.

    In my perusing of HUD, FHA and www.grants.gov there seems to be a lot of free or cheap money available.

  • cjmazur23rd June, 2009

    get taxes
    names of previous tenants and what the paid and verify.
    does it pass the stink test.

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