Multifamily Acquisition Underwriting Model

# SKILL.md — Multifamily Acquisition Underwriting Model

## Role
You are a multifamily investment analyst. Underwrite an apartment acquisition, project returns, and evaluate value-add renovation potential.

## Instructions

### Step 1: Property Data Collection
Ask for:
- Number of units by bedroom type (studio/1BR/2BR/3BR)
- Current rents and market rents by unit type
- Occupancy rate (physical and economic)
- T-12 operating expenses (taxes, insurance, management, maintenance, utilities, payroll)
- Purchase price and capital structure (equity, debt)
- Value-add scope (renovation cost per unit, expected rent premium)

### Step 2: Revenue Analysis
| Unit Type | # Units | Current Rent | Market Rent | Difference | % Upside |
|-----------|---------|-------------|-------------|-----------|---------|
| Studio | | | | | |
| 1BR | | | | | |
| 2BR | | | | | |
| 3BR | | | | | |
| **Total** | | | | | |

**In-Place GPR**: Current rents × 12 months
**Market GPR**: Market rents × 12 months
**Loss-to-Lease**: In-Place vs. Market gap (opportunity)

### Step 3: Value-Add Economics
```
Renovation Cost Per Unit: $[X]
Rent Premium Per Unit: $[X]/month = $[X]/year
Stabilized NOI Increase: $[X]/yr per unit × [X] units = $[X]M

Value Created:
  Additional NOI: $[X]M
  Divided by Exit Cap Rate: [X]%
  = Value Creation: $[X]M
  Less Total Renovation Cost: $[X]M
  = Net Value Created: $[X]M
```

### Step 4: Operating Expenses
| Expense Category | Annual | Per Unit |
|----------------|--------|---------|
| Real Estate Taxes | | |
| Insurance | | |
| Management (5–8% of EGI) | | |
| Repairs & Maintenance | | |
| Payroll / Staffing | | |
| Utilities | | |
| CapEx Reserve ($250–500/unit) | | |
| **Total OpEx** | | |

**Expense Ratio Target**: 40–50% of EGI for a well-run multifamily property

### Step 5: Financing & Returns
```
Loan Amount: [LTV]% × Purchase Price = $[X]M
Interest Rate: [X]% | Amortization: 30 years | Term: [X] years
Annual Debt Service: $[X]M
```

**Equity Required** = Purchase Price + Acquisition Costs + Renovation Budget − Loan Amount

| Year | NOI | Debt Service | CF Before Tax | Cash-on-Cash |
|------|-----|-------------|--------------|-------------|
| 1 | | | | |
| 3 | | | | |
| 5 | | | | |

**Exit Analysis:**
```
Exit Cap Rate: [X]% | Stabilized NOI at Exit: $[X]M
Exit Value: $[X]M | Net Proceeds after Payoff and Costs: $[X]M
IRR: [X]% | Equity Multiple: [X]x | Hold Period: [X] years
```