Hi,
As a proficient financial modeller, I can provide a comprehensive and detailed Excel-based model that evaluates the potential value of a residential property using the DCF valuation method, focusing on both returns and risks over a 10-year hold period.
To ensure a precise valuation, I will begin by creating a detailed proforma that incorporates all required revenue and expense components. This will include analyzing apartment rental income by market and rent-stabilized units, calculating the conversion rate from stabilized to market units or square footage, and factoring in vacancy and credit loss. I will also include effective gross income (EGI) and break down other income streams from parking, retail, laundry, storage, and other sources. On the expense side, I will incorporate detailed costs such as real estate taxes, insurance, utilities, water and sewer, maintenance and repairs, G&A, payroll, legal and professional fees, and management fees.
Using this information, I will calculate the present value of the property in 2010 by applying the DCF valuation method, considering projected cash flows and assumptions over the minimum 10-year hold period. My approach will provide you with a detailed, accurate financial analysis to assess the property’s potential returns and identify any associated risks.
Please feel free to reach out. I’d be glad to chat more about your interesting project!
Thanks.