Underwriting a $1.5M 20-Unit Property

In this video, I walk through my complete underwriting process for a $1.5M, 20-unit commercial residential property. This is a real deal we're pursuing, and I break down every step of the analysis—from income statement to cap rate to financing structure to market analysis.

📅 Book a 1-on-1 call with me: https://calendly.com/justin-peakrev/30min

If you're learning to underwrite multifamily properties, this video shows you exactly how a professional analyzes a deal.

📊 WHAT YOU'LL LEARN:

INCOME STATEMENT BREAKDOWN:
• Gross Potential Income calculation
• Vacancy loss and how to estimate it
• Other income streams (parking, fees, etc.)
• Effective Gross Income (EGI)
• Operating expense breakdown (where I get the numbers)
• Net Operating Income (NOI) calculation

EXPENSE ANALYSIS:
• How to research and calculate each expense category
• Property taxes, insurance, utilities, maintenance
• Property management fees
• Capital reserves
• Where to find comparable data (D12 analysis)
• Common mistakes investors make with expenses

CAP RATE CALCULATION:
• What cap rate means and why it matters
• Current cap rate: 7.7%
• Projected cap rate: 10% (after value-add improvements)
• How cap rate changes with rent increases
• Using cap rate to evaluate deals

DEAL VALUATION:
• How to determine if a deal is worth pursuing
• Comparing to market standards
• Identifying value-add opportunities

FINANCING STRUCTURE:
• How the deal is being financed
• Loan terms and structure
• Debt service coverage ratio (DSCR)
• How financing impacts cash flow

MARKET ANALYSIS:
• Market overview and trends
• Rent growth potential
• Tenant demand
• Competition analysis
• Why this market is attractive

🎯 KEY NUMBERS:
• Purchase Price: $1,500,000
• Units: 20
• Current Average Rent: $960/unit
• Projected Average Rent: $1,150/unit
• Current Cap Rate: 7.7%
• Projected Cap Rate: 10%
• Rent Growth Potential: $190/unit (+19.8%)

💡 WHY THIS MATTERS:

Most investors don't know how to properly underwrite a deal. They either:
❌ Overestimate income (too optimistic)
❌ Underestimate expenses (miss hidden costs)
❌ Don't understand cap rate (can't compare deals)
❌ Make emotional decisions instead of data-driven ones

This video shows you the RIGHT way to analyze a commercial multifamily property so you can:
✅ Accurately evaluate deals
✅ Identify real value-add opportunities
✅ Make confident investment decisions
✅ Avoid bad deals that look good on paper
✅ Understand the numbers behind professional underwriting

💬 QUESTIONS? Drop them in the comments! I respond to all questions about underwriting, deal analysis, and commercial real estate investing.

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Видео Underwriting a $1.5M 20-Unit Property канала Justin Gugliuzza