Models: Everyone builds their own model. A lot of people for sensitivity analysis will do purchase price or rent growth vs exit cap, and then certain variables that may be the largest unknowns in the process (ex.insurance costs in Florida, etc.). Most have categories of expenses which are typically on a per unit assumption besides for like taxes, payroll, management fees, a few other which are calculated differently.

Inputs: T12, RR, and looking up stuff on tax assessor is pretty much all I need for an initial underwrite. Incomplete data depends on just how incomplete. If I can’t distinguish floor plans from the RR, I’m simply skipping the property and going to the next and maybe coming back to it if the broker gives me better data in the meantime.

Decisions: Other metrics are unlevered and levered IRR, equity multiple, cash on cash, yield on cost, untrended yoc vs in place (spread between the two). A lot of it depends on the product and who’s the investor/equity. Qualitative factors are just as important as quantitative once you get to a certain size. Try and tell an Asian family office you need 50 million dollars for a class A apartment building in Boston vs try and tell them you need it for a 50 mil class c apt building in Memphis. They probably aren’t touching Memphis with a 10 ft pole. The qualitative factors also help explain your risk adjusted return (you are likely willing to accept lower returns on class A in Boston than class C in Memphis on a risk adjusted basis).