Ground-up Multifamily Development Model

Me too.

I do not have a model to share with you but I am more than willing to help guide you through yours. Are you doing a month by month DCF breaking out the project cost along with the lease up then stablization and sale?

how prevalent are month to month DCFs in a real estate model? i have seen models without the present value discount to CFs.

Thanks Inspiredanalyst; the lease-up and construction schedules are month-by-month and then annual cash flow once the asset reaches stabilization on a predetermined stabilization month.

Typically, you'd use month-to-month calculations and then do an annual roll-up once the pro-forma is stabilized. For a multifamily project, you'd have a 12-18 month construction curve and then a stabilization period based on the absorption. The purpose of month-to-month calculations for a multifamily that you intend to hold as an operated asset is that most good property managers use revenue management software and market surveys to price apartments based on then-current demand and vacancy rates. Because of that, it is helpful to have a granular model that can be adjusted at the micro-level before being rolled into an easier-to-read annual pro-forma.