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Investment Property Underwriting

Finance Finance Ops Data Analyst Executive Real Estate

The prompt

Conduct comprehensive financial underwriting of an acquisition.

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Steps: 1) Calculate purchase price and closing costs 2) Calculate cash investment 3) Project 5-year cash flows 4) Calculate Year 1 metrics 5) Model refinance/sale scenario 6) Calculate IRR and equity multiple 7) Create pro forma P&L

Output: Executive summary with key metrics, 5-year pro forma P&L, cash flow projection, sensitivity analysis.

Why this works

Disciplined underwriting prevents overleveraging. Scenario modeling reveals sensitivity to assumptions.

Risks & review

Optimistic assumptions inflate returns. Conservative underwriting protects downside.