Want to know how to analyze a multifamily property? Maybe you’ve analyzed duplexes, triplexes, quadplexes, or even ten-unit apartment complexes before, but what about the big deals? We’re talking about multi-million dollar multifamily investments, with hundreds of units, large debt and equity structures, and many, many small pain points only experienced investors would notice.
If you’re looking for an in-depth overview of how to find, analyze, and buy a large multifamily property so you can build passive income and serious equity growth, then Andrew Cushman is the man to talk to. Andrew is so good at what he does that he’s partnered up with BiggerPockets Podcast host, David Greene, to invest together.
In Andrew’s previous episode, he touched on the “phase I underwriting” that comes with analyzing a multifamily deal. In this episode, Andrew focuses on what investors should do after they’ve triaged their deals and are left with only the best in the bunch. Andrew spent years worth of time analyzing deals to come up with these eight steps. He shares them today so you can have less headache and more investing success than when he started!
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Visuals from Today’s Episode:
Rent Increases: https://drive.google.com/file/d/1K0t1etyJgHcIb0GMqc3kuL9_Fk0m3H7K/view
Loss to Lease: https://drive.google.com/file/d/1utSYOfBx-ICh80g1vwm-EOEIcnEYPXXk/view
Debt Quote: https://drive.google.com/file/d/1IZrk4IiHOkC6Bt7Gx-_Nx0Knye8yXOJH/view
Property Taxes: https://drive.google.com/file/d/1qfs2AfF8EGoZXVlAXPrcS1WbrdO5Y0I2/view
Renovation Budget: https://docs.google.com/spreadsheets/d/1orhWUin0mxK703AVIwrC0mKY5eCt_PfI/edit#gid=1328004761
Listen to Andrew’s Past Episodes on The BiggerPockets Podcast:
571 (Part 1 of This Episode!) : https://www.biggerpockets.com/blog/biggerpockets-podcast-571?utm_source=youtube&utm_medium=description&utm_campaign=none
Ask Your Underwriting Questions on the BiggerPockets Forums:
Invest with David on Future Deals:
Sign Up for a David Greene Webinar:
Learn More About Vantage Point Acquisitions:
Connect with Andrew and David on BiggerPockets:
Follow David on Instagram:
@davidgreene24 or https://www.instagram.com/davidgreene24/
02:26 Quick Tip
03:14 Recapping Phase I Underwriting
10:52 Step 1. Rent Increases
17:50 Step 2. Loss to Lease
29:43 Step 3. Debt Quotes & Loan Terms
45:58 Step 4. Insurance Quotes
52:34 Step 5. Property Taxes
58:04 Step 6. Property Manager’s Opinion
1:00:59 Step 7. Renovation Budget
1:05:49 Step 8. Follow Up On P&Ls
1:11:20 Reviewing the 8 Steps of Multifamily Underwriting
1:15:22 Andrew’s Current Deals
1:18:15 Phase 3. Making the Offer!