Multi-family Building Acquisition Financial Modeling

The general idea of the model is to determine the financial feasibility of a Multi-family Building Acquisition Project.

The building is located in Los Feliz, Los Angeles. It has five units, four two-bedroom and a one-bedroom unit. Follow the link to see more information: Multi-family building in Los Feliz.

Multi-family buildings are usually purchased with the intent to lease and produce income to the owner as well as with the expectation of price appreciation of the property.

Assumptions of the model are:

  • Monthly rent
  • Expenses
  • Capitalization Rate
  • Holding Period and
  • Vacancy and Non-payment Rate

Special attention should be given to these assumptions. For example, with the small changes in the Capitalization Rate or Vacancy Rate, the overall profitability of the project may change substantially.
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