Real Estate Valuation Models in Excel Explained - Commercial - Airbnb - Residential
Commercial Real Estate Valuation and Acquisition Models with DCF and Cap Rate
What is important to note is that the following Inputs are mandatory to create a proper and meaningful valuation.
- Your Gross Monthly Operating Income
- Your Fixed Monthly Expenditure
- Monthly Maintenance Provision
- Estimated Market Cap Rate (which should change according to escalation inputs etc)
- Vacancy Factor (%)
- Expected Net Escalation (%) (Growth) %
Optional, however, advisable to test valuation positions under various gearing positions:
- Amount of Gearing
- Length of Loan
- Funders (%) Rate
From this data, your excel model will be able to perform 20 years of valuations with the gearing effects and produce IRR, MIRR, and NPV. These formulas are critical to the valuation process as most informed investors will target a MIRR percentage under given circumstances. With these automated models, you are able to change any or all of the factors in seconds. You can view our Automated Commercial Property Valuation Models here
AIRBNB Acquisition and Valuation Models with DCF, IRR, MIRR, NPV - automated
Airbnb acquisition models are easy to perform when you have the correct model. You are able to view our models at https://proppro247.com/calculators We will typically collate the gearing, monthly expenditure, and estimated income, and together with this data, produce 20 years of Income Statements, Cash Flows, Balance Sheets, annual re-valuations, etc. From this data, you are able to perform accurate valuations and assessments of your AIRBNB propositions, as well as their chances of success when compared to longer-term rental opportunities.
Your AIRBNB Valuation requires the following data
- The asking price of the property
- Predictable Fixed monthly expenditure
- predicted maintenance provisions
- Capex of furniture and equipment
- The amount of gearing which provides a comfortable cash flow
- The predicted Income generated monthly
- Annual escalations in terms of Income and Costs
Residential Investment Property Acquisition and Valuation Models
Residential Investment Property Models should always produce 20 years of Investment Data. Capital Gains Tax provisions are advisable as these will affect your IRR, MIRR, and NPV significantly!
We suggest that you collate the following Data in order to perform a comprehensive Analysis:
- Purchase Price
- Loan Data with a longer-term view on Interest rates going forward
- Estimated Maintenance, Insurance, Licenses, and Levies.
- Escalating annual Income according to your best guess on inflation
- Vacancy Factor