Underwriting properties in a portfolio

[Matthew Shay]

I am looking at some multifamily portfolio deals. How would you underwrite multiple bldgs in a single portfolio. I have heard some say to underwrite each bldg individually. Others say if they get similar rents and expenses then you can underwrite those together. What do you think?

[Dushyant Ravi]

I have underwritten portfolio deals. You want to get an idea on how a single property in a portfolio is performing and so will the lender especially if its crossed. So, when I have underwritten a portfolio, I will have seperate tabs in excel for each individual properties CF and these would be pulling information from a rent roll tab and a CF tab which will have rent roll info and CF info for all the properties in the portfolio. Then, the first tab in my excel sheet will be a portfolio-rollup tab which basically shows you combined cash flows for the portfolio and is adding the cash flow from all the individual property tabs. Bottomline- I want to know how the combined portfolio looks and and also how individual properties look in the portfolio. Let me know if you have any questions.