How to use
Use this worksheet to size a BTR community under agency multifamily mechanics and a scattered-site SFR portfolio under warehouse-line + securitization mechanics. Walks the agency BTR eligibility test, agency sizing math, SFR portfolio NOI build, and securitization vs. portfolio-loan execution comparison.
Section 1. Agency BTR eligibility test
- Single tax parcel, entire community on one parcel (subdivided lots typically disqualify).
- Single ownership, no fractional or condo ownership.
- Professional on-site management, leasing office, maintenance team, property management infrastructure.
- Community-amenity package, typically pool, gym/fitness, clubhouse; varies by program.
- Configuration, horizontal (detached/duplex), vertical (townhomes/midrise), or mixed are all eligible if other tests met.
Section 2. Agency BTR sizing math
Eligible BTR sizes like garden-style multifamily, DSCR floor, LTV cap, debt yield floor, with mission-eligible workforce-housing pricing lift available where applicable.
Section 3, SFR portfolio NOI build
Scattered-site SFR portfolios underwrite by rent-roll quality, market diversification, vacancy trends, and operating cost structure. Build portfolio-level NOI and apply stabilized cap rate.
- Gross potential rent, sum across all homes at market rent.
- Vacancy/credit loss, 5% to 8% on stabilized portfolio.
- Operating expenses, 35% to 45% of effective gross income (higher than multifamily due to scattered-site management cost).
- NOI, apply stabilized cap rate (5.5% to 7.0% for top portfolios, 7.0% to 9.0% for sub-stabilized).
- Concentration limits, single market typically capped at 25% to 35% of portfolio NOI.
Section 4, SFR execution comparison
SFR portfolios choose between warehouse-line aggregator, single-borrower securitization, and bank/debt-fund portfolio loan based on portfolio size and stabilization.