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AI-Generated Underwriting Report

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Underwriting Report
Sunset Apartments
240 Units • Garden-Style Multifamily • Dallas, TX 75201
GO
AI Recommendation
$15,000,000
Purchase Price
6.84%
Cap Rate
18.7%
Leveraged IRR
1.42x
DSCR

1. Pro Forma Summary

Gross Potential Rent $2,880,000
Less: Vacancy (5.0%) ($144,000)
Less: Concessions ($28,800)
Effective Gross Income $2,707,200
Plus: Other Income $192,000
Less: Operating Expenses ($1,073,200)
Net Operating Income $1,026,000

2. Debt Service Analysis

Loan Amount (75% LTV)
$11,250,000
Interest Rate
6.50%
Annual Debt Service
$722,340
DSCR
1.42x

3. Sensitivity Analysis — Exit Cap Rate vs Hold Period

IRR 3-Year 5-Year 7-Year 10-Year
5.50% Cap 22.4% 20.1% 19.2% 18.1%
6.00% Cap 19.8% 18.7% 17.5% 16.8%
6.50% Cap 15.2% 14.8% 14.1% 13.6%
7.00% Cap 10.1% 11.2% 12.0% 12.4%

4. Rent Roll Analysis

Unit mix: 120 1BR/1BA ($1,050/mo avg) | 80 2BR/2BA ($1,350/mo avg) | 40 3BR/2BA ($1,650/mo avg)

Current occupancy: 95.8% | Avg rent per SF: $1.72 | Loss to lease: 4.2% ($121,000 annually)

5. Market Analysis

Dallas-Fort Worth MSA. Population growth: 1.8% YoY. Multifamily vacancy: 5.2%. Rent growth: 3.1% trailing 12M.

6. Comparable Sales

5 comparable transactions identified within 3-mile radius. Avg cap rate: 6.25%. Avg price/unit: $68,500.

7. Operating Expense Detail

8. Capital Expenditure Plan

9. Return Waterfall

10. Recommendation & Risk Factors

See the full 10-section report

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