Summit Equity Enterprises LLC · Multifamily Wholesaleability
Do not lock up unless buyer lined up or major discount accepted.
What the end buyer is really into the deal for.
If the flip or sale stalls, can the buyer survive holding it?
Property cash flows after refinance, DSCR is above 1.25, and the buyer has a rental fallback. Cash out at refi: -$89,437.
"Value-add" (V-A) means a property where you can force value up — by raising rents, fixing units, or cutting costs — rather than just collecting today's income.
A fully rented building with rents already at or near market. Little to no rehab needed. The income is real today — you are buying the cash flow, not the upside. Underwritten strictly because there is less room to improve.
Mostly occupied but rents are below market, or a few units need cosmetic work. You raise rents as leases roll and do light cosmetic updates (paint, flooring, fixtures). Upside is real but modest.
Significant rehab required — outdated units, deferred maintenance, or major systems. Rents are well below market and many units may need to be turned. Higher risk, higher reward: more rehab, more reserves, stricter underwriting.
The building is in rough shape — high vacancy, code violations, failing systems, or financial trouble. Value comes almost entirely from what you fix, not what it earns today. The calculator applies a risk penalty and demands a bigger discount.
Empty or nearly empty. There is little or no current income to underwrite — value depends entirely on what it will rent for once stabilized. Highest execution risk because you carry costs with no rent coming in.