Worth Sheet: apartment building value at today's loan rates

Runs the Worth Sheet valuation worksheet for a 5+ unit apartment building: from a rent roll and a year of expenses (or a known NOI) it returns NOI, expense ratio, value across your cap rate range, the price a financed buyer can carry at the latest 10-year Treasury plus a lender spread (80% LTV, 1.25x DSCR by default), per-unit value, and the refinance loan the income supports against your balance. An estimate from your numbers, not an appraisal.

{
  "type": "object",
  "properties": {
    "unit_mix": {
      "type": "array",
      "minItems": 1,
      "maxItems": 10,
      "description": "Rent roll by unit type, e.g. [{\"units\":12,\"monthly_rent\":1250},{\"units\":16,\"monthly_rent\":1500}]. Give this or noi_annual.",
      "items": {
        "type": "object",
        "properties": {
          "label": {
            "type": "string",
            "maxLength": 40,
            "description": "Optional name, e.g. \"2 bedroom\"."
          },
          "units": {
            "type": "integer",
            "minimum": 0,
            "maximum": 5000
          },
          "monthly_rent": {
            "type": "number",
            "minimum": 0,
            "maximum": 100000
          }
        },
        "required": [
          "units",
          "monthly_rent"
        ],
        "additionalProperties": false
      }
    },
    "noi_annual": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Net operating income per year in US dollars, if you already know it. Give this or unit_mix (not both)."
    },
    "units": {
      "type": "integer",
      "minimum": 1,
      "maximum": 5000,
      "description": "Number of units, for per-unit value when you give noi_annual."
    },
    "other_income_monthly": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Other income per month (laundry, parking, fees), US dollars. Default 0."
    },
    "vacancy_pct": {
      "type": "number",
      "minimum": 0,
      "maximum": 95,
      "default": 5,
      "description": "Vacancy and bad debt, percent of gross. Default 5."
    },
    "property_taxes_annual": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Property taxes per year, US dollars. Default 0. With noi_annual, needed only for tax_reset."
    },
    "insurance_annual": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Insurance per year, US dollars. Default 0."
    },
    "utilities_annual": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Owner-paid utilities per year, US dollars. Default 0."
    },
    "repairs_maintenance_annual": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Repairs, maintenance and turnover per year, US dollars. Default 0."
    },
    "payroll_annual": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Payroll per year, US dollars. Default 0."
    },
    "admin_other_annual": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Admin, legal and other expenses per year, US dollars. Put any lump-sum expense total (excluding property taxes) here. Default 0."
    },
    "management_pct": {
      "type": "number",
      "minimum": 0,
      "maximum": 30,
      "default": 5,
      "description": "Management, percent of collected income; charge it even if self-managed. Default 5."
    },
    "reserves_per_unit": {
      "type": "number",
      "minimum": 0,
      "maximum": 10000,
      "description": "Replacement reserves per unit per year, US dollars. Default 300."
    },
    "cap_rate_low_pct": {
      "type": "number",
      "minimum": 1,
      "maximum": 20,
      "description": "Low end of the cap rate range brokers quote for similar buildings, percent, e.g. 5.5. No government source publishes cap rates."
    },
    "cap_rate_high_pct": {
      "type": "number",
      "minimum": 1,
      "maximum": 20,
      "description": "High end of the cap rate range, percent, e.g. 7."
    },
    "tax_reset": {
      "type": "boolean",
      "default": false,
      "description": "True if a sale resets the property tax bill to a share of the price; value is then solved with taxes at tax_rate_pct of price."
    },
    "tax_rate_pct": {
      "type": "number",
      "minimum": 0,
      "maximum": 10,
      "default": 1.5,
      "description": "Tax rate on the new value, percent of price (county millage as a percent). Default 1.5. Used only when tax_reset is true."
    },
    "treasury_10yr_pct": {
      "type": "number",
      "minimum": 0,
      "maximum": 20,
      "description": "10-year Treasury yield to use, percent. Default: the latest daily par yield the site has (U.S. Treasury)."
    },
    "spread_pct": {
      "type": "number",
      "minimum": 0,
      "maximum": 10,
      "default": 1.75,
      "description": "Lender spread over the 10-year, percent. Default 1.75, the worksheet's placeholder (not a quote)."
    },
    "ltv_pct": {
      "type": "number",
      "minimum": 1,
      "maximum": 100,
      "default": 80,
      "description": "Max loan-to-value, percent. Default 80 (Fannie Mae and Freddie Mac conventional term sheets)."
    },
    "dscr": {
      "type": "number",
      "minimum": 1,
      "maximum": 3,
      "default": 1.25,
      "description": "Min debt service coverage, times. Default 1.25 (both agencies' term sheets)."
    },
    "amortization_years": {
      "type": "integer",
      "minimum": 5,
      "maximum": 40,
      "default": 30,
      "description": "Amortization in years. Default 30."
    },
    "loan_balance": {
      "type": "number",
      "minimum": 0,
      "maximum": 5000000000,
      "description": "Your current loan balance, US dollars, to compare against the refinance loan. Optional."
    }
  },
  "required": [
    "cap_rate_low_pct",
    "cap_rate_high_pct"
  ],
  "additionalProperties": false
}

For an apartment building's net operating income, the price a financed buyer can carry and the income-limited loan size at a ladder of 10-year Treasury levels around today's (default -100 to +100 bp), at 80% LTV and 1.25x DSCR by default. Answers "what is my building worth to a buyer if rates drop half a point?".

{
  "type": "object",
  "properties": {
    "noi_annual": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Net operating income per year in US dollars, e.g. 300000."
    },
    "property_taxes_annual": {
      "type": "number",
      "minimum": 0,
      "maximum": 1000000000,
      "description": "Current property taxes inside that NOI, US dollars. Needed only with tax_reset."
    },
    "tax_reset": {
      "type": "boolean",
      "default": false,
      "description": "True if a sale resets the property tax bill to a share of the price; value is then solved with taxes at tax_rate_pct of price."
    },
    "tax_rate_pct": {
      "type": "number",
      "minimum": 0,
      "maximum": 10,
      "default": 1.5,
      "description": "Tax rate on the new value, percent of price (county millage as a percent). Default 1.5. Used only when tax_reset is true."
    },
    "treasury_10yr_pct": {
      "type": "number",
      "minimum": 0,
      "maximum": 20,
      "description": "10-year Treasury yield to use, percent. Default: the latest daily par yield the site has (U.S. Treasury)."
    },
    "spread_pct": {
      "type": "number",
      "minimum": 0,
      "maximum": 10,
      "default": 1.75,
      "description": "Lender spread over the 10-year, percent. Default 1.75, the worksheet's placeholder (not a quote)."
    },
    "ltv_pct": {
      "type": "number",
      "minimum": 1,
      "maximum": 100,
      "default": 80,
      "description": "Max loan-to-value, percent. Default 80 (Fannie Mae and Freddie Mac conventional term sheets)."
    },
    "dscr": {
      "type": "number",
      "minimum": 1,
      "maximum": 3,
      "default": 1.25,
      "description": "Min debt service coverage, times. Default 1.25 (both agencies' term sheets)."
    },
    "amortization_years": {
      "type": "integer",
      "minimum": 5,
      "maximum": 40,
      "default": 30,
      "description": "Amortization in years. Default 30."
    },
    "shifts_bp": {
      "type": "array",
      "minItems": 1,
      "maxItems": 13,
      "items": {
        "type": "integer",
        "minimum": -300,
        "maximum": 300
      },
      "description": "Moves in the 10-year to test, in basis points. Default [-100,-50,-25,0,25,50,100]."
    }
  },
  "required": [
    "noi_annual"
  ],
  "additionalProperties": false
}

The latest 5-, 7- and 10-year Treasury par yields and overnight SOFR the site has, each with its as-of date, the readings a week and a month earlier when the daily feed has them, and publisher link; plus the loan limits the worksheet uses (80% max LTV, 1.25x min DSCR from the Fannie Mae and Freddie Mac term sheets) and the spread note.

{
  "type": "object",
  "properties": {},
  "additionalProperties": false
}