[Caringpineapple]

Lev,

Thank you for the detailed response. Will go over it in the next day or two to better understand where I went wrong.

As a soft tradeoff, I will be sure to recommend your courses on both reddit and irl since you really seem to know your stuff and have been helpful in helping me understand the material.

Will post if I have any additional questions regarding my model.

Cheers,

[Caringpineapple]

I’ve made a couple of tweaks off of what you said in your previous comment. New Link:

https://drive.google.com/open?id=1UOslUEUi44gcTRgYChyjn-iP2SENyFsD

Thanks again.

[Caringpineapple]

Thanks Lev.

That clears up my question.

[Caringpineapple]

Okay, Here’s my model!

https://drive.google.com/open?id=1j1hwJFofJNLoaNUddesfDcNlu7N59IeF

There is one thing which I am uncertain about and it regards both the purchase and sale price of the property. I was looking for the answer online for a while but I figured it would be easier directly asking you guys.

• For purchase price:
  • Is the NOI I use forward-looking or historical? Do people within REPE generally work with the upcoming year’s NOI projections when making a bid or is a bid generally tied to the historical YTD NOI?
• For sales price
  • Same question essentially. Do I use the historical YTD NOI for sale price or do I use a stabilized year to create an ask?

Thanks, look forward to your feedback

[Caringpineapple]

A few assumptions (please correct me where I am wrong):

For expenses:

• I am assuming operating expenses are only applicable to occupied units?
• I am assuming CAPEX will be applicable to 100% of units, occupied or not?

For revenue:

• I am assuming other income comes from only occupied units? (this would be a contribution towards utility payments, condo fees, etc irl I am guessing?)

Thanks!

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