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Stress test rent, expenses, and debt coverage with a professional underwriting model. Adjust assumptions and see the impact on returns, risk, and equity growth.
CASH FLOW / MO
-$534.92
CAP RATE
4.68%
CASH NEEDED
$127,035
Cash: $97,000
Finance rehab in loan
Adds rehab budget to the loan balance.
14
score out of 100
Monthly cash flow
-$534.92
Annual: -$6,419
Cap rate
4.68%
NOI: $22,705
Cash on cash
-5.05%
Cash needed: $127,035
DSCR
0.78
Target: 1.20
Loan amount
$388,000
LTV: 80.0%
Payment (P&I)
$2,426.96
Total interest: $485,707
Rent to price
7.92%
Annual rent / price
GRM
12.6
Price / gross rent
Payback
N/A
Cash needed / cash flow
OpEx ratio
39.9%
OpEx / effective income
Debt yield
5.85%
NOI / loan amount
Effective income
$3,149.00
NOI
$1,892.04
Debt service
$2,426.96
Break even
110.0%
Year 1
$499,550
Property value
Year 3
$529,973
Property value
Year 5
$562,248
Property value
- Rent to price ratio is near the 1% rule.
- Operating expense ratio under 45%.
- Negative monthly cash flow at current rent.
- DSCR below target of 1.20.
- Cap rate below 5% based on current NOI.
- Debt yield below 8% on current NOI.
- Negotiate price or reduce rehab scope to restore cash flow.
- Increase income or reduce expenses to raise DSCR.
- Validate comps or trim expenses to lift NOI.
- Lower purchase price or lift NOI to raise debt yield.