Bright modern kitchen example for a real estate rehab project.

Airbnb, Commercial Real Estate Properties, Development, Financial Model, Investment, Real Estate, Residential Properties

10-year Financial Projections, 5-year Financial Projections, Break-Even, Cash Flow Projections, Excel, Financial Feasibility, Financial Model, IRR (Internal Rate of Return), Revenue Projections

If you are considering whether a rehab project will add value to your apartment building investment, this template is designed to help you answer that question. This replaces best-guess and rule-of-thumb with a quantitative result on which to make decisions.

The Rehab Project Assessor template provides you with a tool to quickly evaluate whether an improvement effort will provide a sufficient return on your investment. The output shows results for each year up to year 10, and then for years 15, 20, 25, and 30.

Summary
The top half of the outputs section provides a summary of the project expectations. It includes a statement showing the minimum required economic life of the project to earn the minimum required IRR. Additionally, the section displays the total cost and incremental
revenue lift with the selected currency code. The revenue lift is at the minimum required economic life year. The IRR from that year is also shown. Lastly, an assessment indicator will show GOOD in green when a project is expected to meet or exceed the required IRR or otherwise, POOR in red.

Timeline Indicator
The timeline indicator section has two color-coded rows. The first shows the expected economic life of the rehab in gray. The second shows the years (if any) where the rehab project would be successful, in green and red.

Table of Results
The table section shows the IRR for each of the first ten years, and then at years 15, 20, 25, and 30. Below the IRR, the next two rows show the total cost and total revenue lift used for a given IRR result. Total revenue lift is the sum of all the years included at a specified point in time, so year 3 would include the total cost at time 0 and revenue lift for years 1, 2, and 3.

Measures include: Internal Rate of Return (IRR), Total Rehab Cost, and Incremental Revenue Lift.

The template includes instructions and explanations.

There’s also a Google Sheets version of this template. Please feel free to check it out if you prefer this template on Google Sheets: Apartment Unit Rehab Project Assessor – Google Sheets

You must log in to submit a review.