Full-cycle apartment underwriting — unit mix, NOI, IRR, DSCR, breakeven occupancy, sensitivity analysis, and 10-year proforma.
🏠 Unit Mix & Rents
Studio / Efficiency
1-Bedroom
2-Bedroom
3-Bedroom+
💰 Income & Hold Assumptions
5–7% stabilized · 10–15% value-add
Yardi Matrix 2025 forecast: 2.4% A/B, 1.7% C
2025: insurance & taxes driving costs up
Usually 25–50 bps above going-in
Value-add: 12–18% · Core: 8–12%
📋 Operating Expenses ($/yr)
Total annual amounts. Per-unit benchmarks shown in results. Target OER: 40–55% of EGI.
Or use 6–10% of EGI as guideline
~$250–500/unit/yr for older properties
🏦 Acquisition & Financing
Agency (Fannie/Freddie) ~6.0–7.0% 2025
💧 Year 1 Cash Flow Waterfall
🎯 Deal Quality Scorecard
📈 Investment Returns
🏦 Debt & Lender Metrics
🏠 Unit Mix Breakdown
📘 How to Read These Results
Cap Rate
NOI ÷ Purchase Price. Measures property yield before financing. 2025 benchmarks: Class A 4.7%, Class B 4.9%, Class C 5.4% stabilized. Value-add entry: 6–9%.
DSCR & Debt Yield
DSCR = NOI ÷ ADS. Lenders require ≥1.25×. Debt Yield = NOI ÷ Loan — lenders target ≥8–10%. Both measure ability to service debt.
Breakeven Occupancy
(OpEx + Debt Service) ÷ GPR. The minimum occupancy needed to cover all costs. Lower is safer — target <80%. At 90%+ breakeven, the deal has little cushion.
Expense Ratio (OER)
Total OpEx ÷ EGI. Industry range: 35–55%. <35% = highly efficient. >55% = warning sign. Key benchmark for comparing properties of similar type and age.
Levered IRR
Total return on equity including cash flows + appreciation over the hold period. Core target: 8–12%. Value-add: 12–18%. Strong value-add: 18%+.
Equity Multiple
Total cash returned ÷ equity invested. 2.0× = doubled your money. Target 1.5–2.5× over 5 years. Tells you total return, not speed. Compare alongside IRR.
Annual Proforma
| Run the calculator to see the annual proforma. |
Sources & Uses of Funds
🔄 3-Scenario Quick Compare — Bear / Base / Bull
Bear = rents −5%, expenses +5%. Bull = rents +5%, expenses −5%.
Exit Cap Rate Sensitivity
Rent Growth Sensitivity
Vacancy Rate Sensitivity
Interest Rate Sensitivity
NOI vs. Debt Service
Revenue Breakdown (Year 1)
Cumulative Cash Flow & Equity
Rent Roll — All Unit Types