Currently reviewing a 20 property portfolio and each property has a seperate tab that lists rent role, noi, and assigned cap rate provided from seller (so 20 seperate tabs). How do I go about underwriting this as a whole to gauge debt potential for a incoming buyer?

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I encourage you to take an Excel modeling course.


If you are trying to sell a 20 property portfolio and can't give a rough estimate of debt capacity by using rates, amortization, and a minimum DSCR you're gonna have a bad time.


As you may or may not know, a 20 property portfolio has a bunch of moving pieces. Modeling to reflect this isnt the most straight forward. Seller may want to separate certain assets and sell individually while bundling others vs selling portfolio as a whole at a discount. Then comes the question of valuing some properties that have significant value add/ development potential with corresponding air rights etccc and modeling to reflect that. If it was summing up the total noi and assigning a cap rate to entire portfolio then i wouldn't have asked for advice. thank you though.


Your post said you had three things, a rent roll, NOI and assigned cap rates. Nothing about air rights or parceling properties out of the portfolio. Once you have an in place and/or stabilized NOI, then sizing debt should be simple


You said debt potential... not value.


Value each individual property based on the cap rate in their respective market and cash flow from ops. Use a comfortable LTV and bingo.


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