Buy-and-Hold Residential Rental Simple Investment Model

This is a ready-to-use buy-and-hold residential acquisition financial model/pro forma.

A professional excel tool for a quick and thorough analysis/underwriting of residential property investments.

This model can be used for both single family and small multi-family deals. The model suits well for a quick and easy analysis which doesn't require a rent roll flexibility.

In case you are looking for the financial model suitable for other property types, please contact me directly and I will be able to upload for you.

WHO IS THIS MODEL FOR?

If you are looking for a professional financial model which is simple and easy to understand while containing all the main metrics, then this model is for you.

My models are also for those who are looking to present the investment opportunity to clients or investors in a clean and well-designed manner.

My models are also for those who wish to learn from the best practices.



MAIN ADVANTAGES OF THE MODEL

The best features of this model are its polished presentable dashboard as well as simple and short structure.

The model suits ideally for buy-and-hold opportunities within residential rental market. The model can be applied to the analysis of single family, duplex, triplex or multifamily properties.

To make things as easy as possible for you.

Analysis of a potential residential investment with this model is just as easy as it can get.

This model is:

- Clean and transparent;

- Professional;

- Reliable;

- 100% dynamic;

- Easy to use, understand and modify;

- Prepared by an industry professional with a significant track record;

- Presentable;

- Includes only useful information;

- Filling in all the dynamic inputs for the analysis takes less than 5 minutes.



MAIN PURPOSE OF THE MODEL

This residential buy-and-hold acquisition model will help you to:

- Present main metrics of an investment opportunity;

- Estimate rates of return and rental revenue from the property;

- Measure operating, capital and financing costs;

- Present the cash flow of an investment;

- Create dashboard to present to the bank or clients;

- Run "if sold" scenarios which allows to choose the best sale date;

- Perform valuation of an investment property;

- Assess the feasibility of the refinancing option and an amount of take out;

- Assess a range of rental and exit scenarios.



MAIN CONTENTS

This model is suitable for investors and agents looking at residential buy-and-hold acquisition projects. Or it might also serve analysts or prospective analysts looking to improve their modeling skills.

The model is fully dynamic and allows for an extremely quick analysis of a residential property, which is extremely helpful in high-demand markets.

The model consists of 3 interconnected tabs.

The contents are as follows:

- Assumptions Tab;

- Annual Cash Flow for 10 years;

- Debt Schedule, which includes the refinancing and interest-only option for the loan;

- Dashboard with main metrics, charts, and graphs.

In addition, the model includes a detailed notes/instructions section which will guide you through the model.



KEY OUTPUTS

- Initial down payment, current equity in the project;

- NOI, Debt Service, Net Leveraged Cash Flow;

- DSCR, Cash on Cash Return, IRR, Equity Multiple, Net Profit.

- Exit value for the property is calculated automatically based on NOI for a period and cap rate you assume in your projection;

- Additionally, exit values and profits calculated for each year of the holding period on "if-sold" basis.

In case you have any questions or concerns before purchase, please feel free to contact me directly.

This version is tested multiple times by many clients and is free of any errors. However, I am improving my models all the time, therefore I am inviting you to have a look and let me know in case there is anything in this version you would see as a useful feature.