PLEASE MAKE A EXCEL SHEET WITH CLEAR STEP BY STEP DESCRIPTION: Property Overview $($Our Pick$)201$ E S $1$st St$,$ Johnstown, CO $8053413-$unit multifamily $$Listed at $$2,400,000$NOI: $$136,945$Pro Forma NOI: $$157,859$Going$-$In Cap Rate: $5\mathrm{.}71\%$Pro Forma Cap Rate: $6\mathrm{.}58\%$Class C building, built in $1920,$ new roof in $2017,$ two new boilers $(2021)12$ out of $13$ units renovated. Step $1$: Lock in the Investment Strategy Our two best options: $$ Core Plus $$ if we don$$t plan to use any major reinvestment cash, just ride the appreciation and maybe modestly improve OPEX$/$rents as tenants turn over. $$ Value Add $$ if we justify using excess REIT cash to upgrade the final unit, expand basement storage income, or invest in light amenities $($e$.$g$.,$ shared laundry, smart locks, etc.$).$ Rough Draft Decision: Go with Core Plus unless we can model value$-$add improvements that push NOI higher than $$157,859.$ Keep this open in case we want to pivot. Target Rent Comps $($to refine$)$: $1$BR: ~$$1,250/$month $2$BR: ~$$1,500/$month $3$BR: ~$$1,700/$month Step $3$: Build the $6-$Year Pro Forma and Financial Model Key metrics required: $$ Going$-$In Cap Rate $(5\mathrm{.}71\%)$ Terminal Cap Rate $($estimate: $6\mathrm{.}00\%6\mathrm{.}25\%)6-$year BTCFs and ATCFs $$ Leveraged IRR $($BTIRR$,$ ATIRR$)$ Cash$-$on$-$Cash Return $$ Taxable income, tax assumptions $($Marginal: $35\%,$ Capital Gains: $20\%)$ Rough Draft Inputs: $$ Purchase price: $$2,400,000$ Down payment: $30\%=$ $$720,000$ Loan: $$1,680,000,25-$year amortization, $7\%$ interest, $5-$year balloon $$ Sale price in year $5$: use pro forma NOI x Terminal Cap Rate $($Year $6$ NOI $/6\mathrm{.}00\%$ cap$)$ Expenses to sell: $7\%$ of sales price $$ Expense growth: $3\%$ annually $$ Rent growth: $2\mathrm{.}53\%$ Roof exemption: No need to model roof replacement $($done in $2017)$ We$$ll build all this in Excel across multiple tabs or one detailed sheet. $$ Pro Forma $+$ Excel Model Lead $$ Build out Year $16$ income$/$expenses $$ Model sale in Year $6$ Run IRRs and returns