REPE Modeling Tests: Formats, Timing, and How to Prepare

REPE modeling tests are not "LBO tests with rent instead of EBITDA." Interviewers want a property model that ties: rent and vacancy to NOI, NOI to debt sizing and cash flow after debt service, and equity cash flows to levered IRR and equity multiple. Timing is tight. Formatting is secondary to a coherent cash flow statement and a waterfall that does not invent promote math.

Common formats

Some processes start with a short verbal underwriting question, then Excel. Others drop you straight into a sheet with an OM excerpt.

The 30-second answer

"I build rent and vacancy to NOI, size debt off LTV and DSCR, time CapEx, exit on the stated NOI and cap convention, then run equity cash flows to IRR and MoIC. If there is a JV, I paper hurdles before nested IFs. Under time, a clean cash flow beats a pretty dashboard."

What "done" means

1. Gross potential rent → vacancy / concessions → EGI → opex → NOI
2. Debt sized off LTV and/or DSCR with interest and amort that match the prompt
3. CapEx and reserves timed correctly (especially value-add)
4. Exit via forward NOI / exit cap (or stated method) minus selling costs and debt
5. Equity cash flows produce IRR and equity multiple
6. If asked, JV waterfall distributes without negative plugs that hide errors

Suggested build order under time

The math interviewers grade hardest

NOI = EGI − Operating Expenses
Loan = min(LTV × Value, NOI ÷ DSCR ÷ Debt Constant)  [prompt-dependent]
BTCF ≈ NOI − Debt Service − CapEx (and reserves as specified)
Exit Value = Forward NOI ÷ Exit Cap Rate

Clarify whether exit uses trailing or forward NOI. That single choice moves returns a lot.

Value-add specifics

If the case is renovate-and-lease-up:

• Separate in-place rent from market rent (loss-to-lease)
• Time CapEx and downtime / vacancy during turns
• Do not jump overnight to stabilized NOI in Year 1 without the prompt allowing it
• Keep a simple lease-up schedule even if ugly

JV waterfall under the clock

If they add a promote:

1. Return of capital (confirm order)
2. Pref to LP (and GP if specified)
3. Catch-up if in the docs
4. Promote splits above hurdles

Paper the hurdles in a tiny table before coding nested IFs. Wrong catch-up logic costs more time than a slightly ugly IRR.

Error checklist (last 10 minutes)

Multi-week prep plan

Week 1: One multifamily acquisition model from blank, timed 90 minutes.
Week 2: Value-add with CapEx and loss-to-lease; add exit cap sensitivity.
Week 3: Add a simple two-tier JV waterfall.
Week 4: Full mock from an OM PDF excerpt under 2 hours; no internet rabbit holes.

Practice on Project Sunbelt until the NOI and debt blocks feel automatic, then layer JV waterfall questions.

Verbal questions that pair with the test

• Walk me through how you get from rent roll to NOI
• How do you size debt with both LTV and DSCR constraints?
• Why might exit cap differ from going-in cap?
• Unlevered vs levered IRR: what each ignores

Also pair with multifamily pro forma walkthrough and exit cap vs going-in so the verbal matches the Excel.