Simple sample transaction summary - returns shown

[Steven Alvarez]

Hi everyone, I am a research associate for a nation-wide luxury residential development advisory firm, and a real estate agent in NJ.

I am posting a simple sample transaction summary below for a 4-unit brick apartment building. I use a discounted cash flow model to derive the return estimates in the image below, see Returns Summary section on the left side of the image. See transaction assumptions in the image below as well. See property overview below.

Property Overview
4-unit brick apartment building. All 2BR, 1BA units. Baseboard heat. 7 parking spots total. Unit appliances included. Laundry in the basement. Water paid by owner. Fully occupied. First year taxes amount to $20,000. $3,360 yearly insurance. All income and expense growth rates are ~2%. Model assumes a total of $66,000 cash renovations the month after acquisition.

Let me know if you guys find this interesting and would like to see more!