How to analyze a small multifamily property

A narrated walkthrough of REIzer's multifamily analyzer: a six-unit building rented below market, scored, then the rent roll, the value-add, a stress test and thirty-year wealth.

A six-unit Kansas City building, underwritten unit by unit.

What the video covers

The multifamily workbench starts from a six-unit example where every unit rents below the market. Type the address, the purchase price and the down payment; each unit's rent lives in the rent roll. Analyze scores the building 78 out of 100, with the cash flow, cap rate and debt coverage behind it.

Then the panels: the Rent Roll lists what each unit rents for today against what the market would pay; Value-Add shows what the building could be worth once rents reach market, set against the renovation budget; the Stress Test checks whether it still pays if vacancy climbs or rates rise; and 30-Year Wealth shows the equity and cash flow building year by year.

Why value-add matters here

At today's rents this building is only fair. The value-add panel is where the deal makes sense: lifting rents to market adds about $174,000 of value against a $55,000 renovation. That's the number worth checking before you offer.

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