Multifamily Acquisition Underwriting (IRR)

What it extracts

16 extraction fields

Deal Summary and Recommendation

The one-look front page - property snapshot, purchase price, going-in cap rate, hold, and the computed headline returns - with an explicit Pursue / Pursue with conditions / Re-trade / Pass call so a reviewer can orient before reading detail.

Document Checklist and Completeness

Which underwriting documents were provided, missing, and how they map to the user's files - flagged by importance so the reviewer knows whether the return math can be trusted before reading it.

Property and Deal Overview

The property and deal identity - type, market, vintage, unit count, area, price and price-per-unit, and current physical and economic occupancy - the frame every downstream number hangs on.

Unit Mix and Rent Analysis (In-Place vs Market)

Per floor plan: unit counts, occupancy, in-place versus market rent, the loss-to-lease that the business plan burns off, and the renovation premium - the revenue engine of the underwriting.

In-Place Operating Statement Normalization (T-12)

The trailing-twelve-month statement normalized to a standard income statement - gross potential rent through EGI, opex, and NOI - so in-place performance is comparable across deals and the NOI foots.

Stabilized Pro-Forma Operating Assumptions

The stabilized business-plan assumptions the model runs on - rent and expense growth, vacancy, concessions, bad debt, management fee, tax reassessment, reserves, and stabilized NOI - each marked as extracted or as an applied underwriting assumption.

Value-Add Capital Plan

The capital plan by bucket - day-1 deferred maintenance, interior renovations, exterior/amenity, major systems, recurring reserves, contingency - with cost, timing, funding source, and the rent premium each renovation dollar is meant to buy.

Financing Terms

The senior (and any bridge) debt - amount, LTV/LTC, rate or index-plus-spread, IO period, amortization, term - plus the computed debt yield and DSCR at close that determine whether the loan sizes.

Acquisition and Disposition Assumptions

The entry cost build-up (price, closing costs, fees, upfront CapEx, reserves) and the exit assumptions (hold period, exit cap rate, sale-price basis, disposition costs) - with the exit-cap-versus-entry spread flagged for discipline.

Cash Flow Projection

The annual pro-forma cash flow across the full hold - EGI, NOI, CapEx, debt service, and unlevered and levered cash flow with the disposition-year sale proceeds - the stream every return metric is computed from.

Return Metrics

The institutional return set computed and shown with formulas - unlevered and levered IRR, equity multiple (MOIC), cash-on-cash, yield-on-cost and the development spread, going-in and exit cap rate, DSCR, and debt yield.

Underwriting Sensitivity Analysis

Levered IRR and equity multiple stressed against the levers that move multifamily returns - exit cap rate, rent growth, renovation premium achieved, interest/refi rate, and exit timing - with scenarios that breach the equity hurdle or DSCR flagged.

Projected Levered IRR (%)

The base-case projected levered IRR as a single sortable number, so a team screening many deals can rank them at a glance.

Equity Multiple (x)

The base-case equity multiple (MOIC) as a single sortable number - total equity returned per dollar invested over the hold.

Underwriting Consistency and Data-Quality Checks

The recompute-and-reconcile checks a senior analyst runs before trusting the model - NOI foots, cap rate/DSCR/debt-yield/yield-on-cost tie out, sources equal uses, exit-cap discipline, no CapEx in opex - each Pass, Fail, or Review.

Key Risks and Mitigants

The material risks by category - market, execution, interest-rate/refinance, exit-cap expansion, expense/tax, concentration, leverage, partnership - each with a severity anchored to the sensitivity results and the available mitigant.

Where it fits

What it needs

What it produces

Review model

An acquisitions analyst or investment-committee member reviews the flagged consistency checks, the values the agent labeled as underwriting assumptions (versus extracted facts), and the recommendation before the deal advances. Judgment-heavy calls - market view, sponsor conviction - stay with the reviewer.

Who uses it

Volume fit

Grounded in

• Going-in capitalization rate convention: Cap Rate = Year-1 Net Operating Income / Purchase Price (or value); exit/terminal value = forward NOI / exit cap rateverified as of 2026-07-22
• Return-metric definitions: unlevered IRR (property-level cash flows), levered IRR (equity cash flows after debt service), equity multiple / MOIC = total distributions / equity invested, cash-on-cash = annual levered cash flow / equity investedverified as of 2026-07-22
• Lender underwriting metrics: DSCR = NOI / annual debt service; Debt Yield = NOI / loan amount; Yield-on-Cost = stabilized NOI / total project costverified as of 2026-07-22
• Uniform Standards of Professional Appraisal Practice (USPAP)verified as of 2026-07-22

Changelog

• July 2026