The Multi-Family Housing Rental Renovation model projects
monthly future cash flows from the renovation and rental of a multi-family
housing property. This covers rent roll, project costs, financing, levered free
cash flow, and a cash waterfall for investors. The tabs included are:
• Project Inputs with purchase and valuation figures
• Monthly Cash Flows through the renovation and rental of the multi-family
The Project Inputs tab contains the assumptions of the
renovation project. Details of the project such as the renovation schedule, operational
costs, and finance options are entered in this tab and flow into the Monthly
Cash Flows tab. The financing options account for a transitional loan through
the renovation period and a permanent loan after stabilization. This tab
includes a capitalization and funding breakdown along with purchase and
valuation assumptions for a potential exit strategy.
The Monthly Cash Flows is a proforma with projected revenue from
the rent of the units after renovation and operating expenses from the property.
The Project Costs Section is tied to the inputs tab and calculates the net
sales realization and unlevered cash flows. The Financing Section breaks down
the two loan structures based on the assumptions. The Levered Free Cash Flow
Section sums up the above sections to calculate the equity balance and IRR.
Lastly, The Cash Flow Waterfall displays the contribution and distribution of
the project for investors. This includes metrics such as IRR, NPV, Cash on Cash
Multiple and Equity Multiple for the project.
All cells in blue font are input cells where custom
information can be entered. All cells in black font are formulas set to
streamline the model.