Analyzing Multi-family Properties

4 Replies

I'm new to investing and trying to learn how to analyze if a mulit-family property will make money. Is there any program or spreadsheet that I can use to plug in numbers to help me evaluate the potential profit?

@kia check the analyze tab there may be something in there.  Check out a few of the blog posts about analyzing properties,  you should be able to find one that breaks it down.  

Hi Kia,

Are you buying multifamily yourself to hold, trying to assign or wholesale it??

Are you wanting to go after vacant apartment buildings, 50% occupied value add, or fully performing??

What size of apartments 4 and under, 30, 50, 150, 300 units??

First you have to start with what you are trying to do. Next look at your capital available. Then determine size, location, and asset class of building you want to target. This will help drill down on how you analyze the building to get started.  

@Kia DeBose  The book that first got me interested in multifamily was "The Complete Guide to Buying and Selling Apartment Buildings" by Steve Berges.  In fact, after completing a masters degree in Real Estate Finance and working for an investment company that buys and operates apartment buildings, I can say it was one of the most informative books I have ever read on the subject matter. It was an easy read and explains the financial evaluation process very simply.

The basic form for analyzing a commercial building is known as an APOD. There is probably one in the FilePlace under the resources tab above. 

As others have said there is more to it than just the raw numbers but that is a good start.

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