When it comes to multifamily investing, the proforma is one of your most important tools. It’s essentially a forward-looking financial model that shows how a property is expected to perform in the next 12 months or once stabilized. A good proforma helps you quickly separate promising opportunities from deals that just won’t pencil out.
The problem? Too many investors spend hours building proformas for deals that were never worth the time—or worse, they move too slowly and miss out on great properties already in escrow or under contract.
That’s why at IntellCRE, we focus on helping investors build accurate, market-driven proformas in minutes, not hours:
What Is a Multifamily Proforma?
A proforma is your property’s “financial blueprint”—a projection of income, expenses, financing, and returns.
At its core, a multifamily proforma answers questions like:
What will the property’s income look like once rents are optimized?
What operating expenses should I expect, and how might they change over time?
How much financing can I support based on cash flow and lender requirements?
At what price does this deal make sense for my investment goals?
By pulling together property data, market comps, expenses, and financing terms, the proforma gives you a clear picture of whether the deal works—and at what price.
The Key Ingredients of a Strong Proforma
Building a proforma doesn’t have to be overwhelming. Here are the essential inputs every multifamily investor needs:
Basic Property Data
Address, year built, unit mix (e.g., 6 one-bedrooms, 4 two-bedrooms).
This frames the scope of the deal.
Rent roll → details the existing rents and occupancy.
T-12 (trailing 12-month financials) → operating expenses, taxes, maintenance, utilities.
Financing Assumptions
Loan terms: LTV, interest rate, amortization, origination fees.
Lender constraints like debt service coverage ratio (DSCR).
Market-Level Data
Rent comps to project proforma rents.
Vacancy assumptions based on local market research.
Rent growth forecasts tied to broader economic trends.
Sales Comps: Recent transactions for similar properties in the market.
Target Returns
Cash-on-cash, cap rates, IRR, equity multiple.
These benchmarks filter whether a deal meets your investment goals.
Why Building a Proforma Matters
Without a proforma, you’re flying blind. With one, you gain:
Clarity → Know if a deal actually cash flows.
Speed → Make quick, informed decisions before competition takes the deal.
Discipline → Avoid overpaying or underestimating expenses.
Strategy → Align acquisition decisions with long-term portfolio goals.
For agents, proformas are just as powerful: they add credibility with buyers and give sellers the data they need to justify pricing.
Step-by-Step: Building a Proforma in IntellCRE
Here’s how the process works in practice using the IntellCRE platform. Each step is designed to cut down on manual work and get you to an actionable proforma in minutes:
Step 1: Enter Basic Property Info
Plug in the property address, year built, and unit mix.
Step 2: Upload Key Documents
Add the rent roll for current income.
Upload the T-12 for expenses.
The system automatically parses the numbers for you.
Step 3: Project Proforma Income
Use rent comps pulled directly from the market.
Adjust unit-by-unit rents based on comparables.
Factor in market rent growth rates, vacancies, and more.
Step 4: Adjust Expenses
Review uploaded expenses (taxes, utilities, management).
Forecast expense growth (e.g., inflation or tax reassessments).
Step 5: Analyze Sales Comps
Pull recent transactions of comparable properties.
See a pricing range to guide your offer.
Step 6: Layer in Acquisition Financing
Input loan assumptions: LTV, interest rate, amortization.
Platform automatically calculates DSCR and max leverage.
Step 7: Create Analysis & Review Returns
Select Create Analysis
See projected cash flow, IRR, equity multiple, and cap rate.
Compare against your target return thresholds.
Step 8: Decide Fast
Green light? Move forward with confidence.
Red flag? Save your time and move on to the next deal.
Final Thoughts
A multifamily proforma isn’t just a spreadsheet—it’s your investment decision filter. It helps you avoid wasted time, price properties correctly, and focus only on the deals that align with your strategy.
For investors, that means making confident, profitable decisions. For agents, it means positioning yourself as a trusted advisor rather than just a salesperson.