NOI-driven valuation
Value derived from stabilized net operating income at market cap rate, with the gap to asking price stated plainly.
Multifamily analysis
Multifamily Property Analyzer for 5+ Unit Deals
Multifamily is valued on income, which means every dollar of net operating income you add or lose moves the asset's price by many times that amount. This analyzer underwrites the operating story first and the financing second.
Free account required. Three complimentary analyses, then membership for continued access.
What paid memberships unlock
Complimentary analyses include a verdict, plain-language why, key numbers, top three risks, basic next step, offer guidance when possible, and a one-page summary. The advanced features below require Investor Plus or Investor Pro, as applicable.
Debt coverage testing
Debt service coverage at current and stressed occupancy, the ratio most lenders decide on.
Value-add upside
What renovated rents, tightened expenses, or better collections do to the asset's value at exit.
Per-unit economics
Income, expense, and price on a per-unit basis so you can compare deals across markets.
Why multifamily rewards operations
At a six percent cap rate, one hundred dollars of monthly rent added across twenty units is roughly four hundred thousand dollars of created value. That leverage is why multifamily underwriting focuses obsessively on the rent roll and the expense line rather than the purchase price alone.
The same leverage runs backwards. Higher insurance, a payroll line the seller omitted, or collections below ninety-five percent can erase the entire spread. The analyzer flags each of those as a value risk rather than a rounding error.
Metrics returned
- Net operating income
- Debt service coverage ratio
- Price per unit
- Economic vs. physical occupancy
- Expense ratio
- Stabilized exit value
Questions
- What size deals does this handle?
- Five units and up, from small apartment buildings to institutional-size portfolios.
- Can I model a value-add business plan?
- Yes. Model current operations, then run a second analysis at renovated rents to see the created value.
- Do you review the rent roll?
- The analyzer works from what you enter. An analyst report adds human review of the rent roll and trailing financials.