Lesson 12: ROI Analysis

November 12, 2025

Review:

  • Multifamily Residential

Presentation:

  • Pro Forma ROI Analysis
    • ROI worksheet
    • Begin with Asking Price (or your intended offer price)
    • Estimate rental income – what is fair market rent?
    • Estimate expenses
      • Property taxes
      • Insurance
      • Maintenance
      • Repairs
      • Management
      • Utilities
    • Use an amortization schedule
      • Calculate interest payments
      • Calculate principal payments
    • Estimate tax benefits
      • Depreciation
      • Tax shelter
      • Tax savings
    • Make assumptions
      • Appreciation of property value
      • Rent appreciation
      • Expense inflation
    • Estimate ROI
      • Total
      • Annualized

Activity:

  • Complete a “first draft” ROI worksheet for one of your selected multifamily properties

Assignment:

  • Complete a first draft for all 3 of your selected multifamily properties.

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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