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Building the model

Generate the pro-forma with AI

How Relm builds the 10-year model from your rent roll, P&L, OM, and submarket data — and what each assumption is anchored on.

Relm TeamUpdated 3 min read
On this page

The Generate Pro-Forma action runs Relm's financial agent against the property and produces the full 10-year model. This page explains what the agent does and what each line item is anchored on.

When to generate

Generate the pro-forma after Deep Research has populated Basic Info, Taxes, Comps, Units, Area Stats, and (when present) Documents. Generating before those are settled produces a thinner model with more assumed values.

What the agent does

When you click Generate:

  1. Read the property state — basic facts, taxes, units, comps, area stats.
  2. Read your uploads — rent roll (for GPR and unit-mix), P&L / T-12 (for expense baselines), OM (for context).
  3. Pull submarket benchmarks — rent growth, vacancy, expense ratios for the asset class in this submarket.
  4. Build line items — fill each pro-forma row across all 10 years.
  5. Tag every value with a citation or assumption rationale.
  6. Compute returns — IRR, equity multiple, DSCR.

The output is written into the property's state and the Financial section becomes interactive.

What each line item is anchored on

  • Gross Potential Rent (GPR) — sum of in-place rents from the rent roll, grown forward by the rent-growth assumption.
  • Other Income — taken from the P&L if present; otherwise modeled as a small percent of GPR consistent with asset-class benchmarks.
  • Vacancy & Concessions — submarket vacancy trajectory + concession patterns from listing data.
  • Property Taxes — from the Taxes section's most recent bill, grown by the reassessment-cadence-aware tax growth assumption.
  • Insurance — asset-class + geography benchmark (Florida coastal multifamily is very different from Midwest garden multifamily).
  • Utilities — from the P&L if present; otherwise per-unit benchmark.
  • Repairs & Maintenance — per-unit-per-year benchmark for the asset class and vintage.
  • Payroll — per-unit benchmark, scaled by property size.
  • Marketing — small percent of GPR.
  • Management Fee — typically 3.0–3.5% of EGI (configurable).
  • Capex — vintage-aware capex reserve (older properties get higher reserves).
  • Debt Service — assumes a default loan structure unless you override (interest rate, LTV, IO period, amortization).

Default debt assumptions

Relm seeds debt with conservative defaults:

  • LTV — 65%
  • Interest rate — current market rate for the asset class
  • Interest-only period — 0 years
  • Amortization — 30 years

These are starting points. Override them to match the term sheet you're underwriting against.

Default exit assumptions

  • Exit cap rate — submarket median + a 25–50 bps spread (cap rate expansion)
  • Hold period — Year 10
  • Selling costs — 1.5% of gross sale price

Override these if your underwriting horizon or assumptions are different.

Re-generating

You can re-generate the pro-forma at any time. Each re-generation costs a credit on Self-Serve. Manual overrides are preserved via merge by default — see Manual edits & assumptions.

What the agent does not do

  • Doesn't model your equity waterfall. GPLP/LP splits, promote, prefs — that's downstream.
  • Doesn't underwrite tax abatements. If a deal has a 421-a, 421-g, PILOT, or freeport abatement, you'll need to override the tax line.
  • Doesn't model construction draw schedules or development pro-formas — Relm Pro is built for stabilized acquisitions.

What's next

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