Where can I find a Multifamily Calculator

Question

I was told I can find a multifamily calculator here on BP. For the life of me I can not find it. Does anyone have one or know where I can find one?

Josh Edwards · Answer

Hey Amanda,

Typically when analyzing multifamily properties, or any other commercial real estate property for that matter, investors will use what’s called a pro forma real estate financial model. I’ve noticed that most beginners like to use the Michael Blank Syndicated Deal Analyzer, as it’s pretty intuitive to start out with, and he gives you a tutorial on how to use it. I’ve linked it below. It is quite costly, I think about $150, but like anything, you get what you pay for. There are other options like David Toupins model, but I’ve never used it. It’s all personal preference. The most important point is that you start to get comfortable underwriting deals with an actual financial model.

https://themichaelblank.com/sy...

Christopher Burge · Answer

@Amanda Kroepfl A lot depends on what your are talking about when you mean multifamily. If you are looking at smaller commercial units like 10-20 units, then the BP rental calculator "may" work assuming you are funding the deal yourself. When you get into larger deals, especially syndicated deals, that calculator will not work. It was more meant for SFH and small MF deals. As mentioned by @Josh Edwards, I found the Michael Blanks SDA a good start for larger deals to learn the basics. Most groups make their own tools for underwriting though because how you come up with your business plan is unique to your strategy. If you are looking for something to learn from as you start off, I think the SDA is a good but I would read books like Multifamily Millionaire Vol. 2 by Brian Murray, The Definitive Guide to Underwriting Multifamily Acquisitions by Robert Beardsley and How To Analyze Big Apartment Buildings & Make Them Feel Small by John Stoeber (there are more, those are just a few) to further develop your underwriting skills. Learning and understand what goes on in the background of underwriting writing is very important as mentioned by Account Closed After underwriting a few times, you will likely learn that you need a flexible solution that fits your needs rather than something off the self. If you are not a numbers person, it would be good to partner with someone that has that skill set. Best of luck on your RE journey!

Account Closed · Answer

I recommend making you own analysis spreadsheet. You will learn a lot by doing so and you will develop an intuitive sense of how things work. I haven’t read many RE investing books, so there are probably better ones available, but I used a book by Gallenelli called What every RE investor needs to know about cash flow.

I suggest making an APOD. This will give you a snapshot of the investment. You can google it.

Kash Jawed · Answer

The calculators under Tools. I recall Brandon Turner mentioning that this calculator should cover smaller MF properties.

Where can I find a Multifamily Calculator

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