The Verdict
Crunching the numbers…
Cash to Close
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Monthly Cash Flow
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Cap Rate
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Cash-on-Cash
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Deal Fundamentals
Year One BasisLoan Amount—
Monthly P&I—
Loan-to-Value—
Total Project Cost—
Gross Annual Rent—
Effective Gross Income—
Annual Operating Expenses—
Net Operating Income—
Annual Debt Service—
Annual Cash Flow—
DSCR—
Op. Expense Ratio—
Pre-Debt Income / mo available for mortgage—
Underwriting Rules
Pass / Fail1% RuleMonthly rent ≥ 1% of price
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2% RuleAggressive cash-flow target
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50% RuleOpEx ≤ 50% of gross rent
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70% Rule (flips)Price ≤ 70% ARV − rehab
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Gross Rent MultiplierUnder 8× is generally healthy
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DSCR ≥ 1.25Typical lender minimum
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CoC ≥ 8%Cash-on-cash return target
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Sale Analysis
Exit Returns
10 yrs
Sale Price—
Selling Costs—
Loan Payoff—
Net Sale Proceeds—
Cumulative Cash Flow—
Total Profit—
Return Multiple—
IRR—
30-Year Trajectory
Cash Flow • Value • Equity
Property Value
Equity
Cumulative Cash Flow
Annual Detail
Year-by-Year| Year | Gross Rent | Effective Income | OpEx | NOI | Debt Service | Cash Flow | Property Value | Loan Balance | Equity |
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