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Put in the units and what they rent for today, what they would rent for after renovation and what that work costs, the expenses, the loan and the refinance you have in mind, and this runs the whole hold: monthly cash flow, the refinance, the sale, and the return (IRR) for every year you might sell. It is the model we use to look at buildings ourselves, free to use, and every assumption is yours to change.
The table below shows every year to 30 regardless; the slider picks the sale year for the headline numbers.
One row per unit type. Leave the renovation cost at 0 (or set the after-renovation rent equal to today's) for units you would leave alone. Renovation starts in the month you set and runs one unit after another at the pace you set; a unit earns nothing while it is being worked on.
| Type | Units | Rent today | Rent after reno | Reno cost / unit | Months / unit | Start month | Units / month |
|---|
Anything that is not a per-unit renovation: porches, common areas or exterior work at purchase, then the roof, tuckpointing, a boiler or windows in the years ahead. Year 1 items count as part of the purchase renovation (they can ride the bridge loan); later items are paid from cash flow when they come up and lower that year's cash flow and return.
| What | Cost | In year | Month of that year | Spread over (months) |
|---|
Vacancy from renovation downtime is calculated from the schedule above and shown separately; this percentage is the ongoing allowance on everything else.
Cap rate: sale price = the following 12 months of NOI divided by the exit cap. Growth: price plus renovation dollars, grown at the rate you set. Selling costs are an editable assumption; every fee in a real transaction is negotiable.
What the building could collect, what it collects, every expense line, NOI, then the debt and capital below the line. Click a section heading to fold it. Per unit is per year.
"IRR if sold" is the annualized return on your cash if you sold at the end of that year, counting every monthly cash flow to that point, the refinance if it has happened, and the sale proceeds. Cash-on-cash is that year's cash flow after debt service (before renovation dollars) over the cash you still have in the deal.
Income starts from your rent roll. Units keep today's rent until their renovation month, earn nothing while they are being worked on, and come back at the after-renovation rent; all rents and other income grow at the rate you set, stepping up once a year. Ongoing vacancy is a percentage of everything that could be collected. Expenses are your first-year figures grown yearly, plus management and reserves as a share of collected income and a turnover-and-leasing allowance per unit. NOI is income after expenses. The loan amortizes monthly (interest-only first, if you set that). Renovation is paid in cash as the work happens, or drawn on a bridge loan that charges interest monthly and is repaid at the refinance or the sale; capital projects in later years (a roof, tuckpointing) come out of that year's cash flow. The refinance appraises the building at the next twelve months of NOI over the cap rate you set (or the value you type), borrows the loan-to-value you set, pays off everything outstanding and the refinance costs, and hands you the difference; the new loan amortizes from there. The sale prices the building the same way (or by growth), takes off selling costs and the loan balance, and returns the rest to you.
IRR is solved on the monthly cash flows and annualized, and the equity multiple is everything paid out to you divided by everything you put in. Left out on purpose: income taxes and depreciation, partnership splits and preferred returns, rent control or below-market leases, insurance and tax reassessment shocks beyond your growth rate, and the value of your own time. Every default here is an assumption to be replaced with the building's actual numbers, and we are glad to help you find them.
We are real estate brokers. We are not lenders, appraisers, accountants or investment advisors, and this model is an educational tool, not a recommendation, a rate quote, an appraisal or tax advice. It is only as good as the numbers you put in; a real underwriting starts from the actual rent roll, tax bill, utility history and lender term sheet, and every fee in a real transaction is negotiable. Before you make an offer, put a lender, an inspector and, if it matters to you, an accountant in front of the actual building. We are glad to introduce the ones our clients trust.
We will pull the comps and the tax bill, sanity-check the rents against what is leasing nearby, and run this model with the real numbers, whether or not you buy it through us. If you would like the same tool with the listing data pulled in automatically, that is coming.
Buying to renovate and resell rather than hold? That is a different model with different math, and our house flip calculator runs it: rehab, hard money, months held, and the most you could pay for the building.
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