Property assumptions
Contract price before acquisition and closing costs.
Down payment plus closing, renovation, and other cash placed into the deal.
Full rent expected for one month before vacancy or collection loss.
Parking, laundry, storage, pet, or other recurring property income.
Expected share of potential income lost to vacancy or nonpayment.
Recurring property costs before loan payments, depreciation, and income tax.
Principal borrowed against the property at purchase or refinance.
Total principal and interest payments for one year.
Cash set aside for infrequent major items such as roof, HVAC, or appliances.
Yield investors currently require for comparable properties; used here for value sensitivity.
OPM is still equity in the deal. If outside investors contribute the $110,000, project-level cash invested remains $110,000. Your personal cash may be $0, but reporting “infinite return” would hide the investors’ capital. Measure the property return on total equity, then separately calculate your sponsor economics and distributions.
Live indicators
stronger cushion
review
thin/negative
Net operating income
—
Income after vacancy and operating expenses, before debt and income tax.
Going-in cap rate
—
NOI ÷ purchase price.
DSCR
—
NOI ÷ annual debt service.
Cash-on-cash return
—
Cash flow after debt and reserve ÷ total cash invested.
Loan-to-value
—
Loan ÷ purchase price.
Operating expense ratio
—
Operating expenses ÷ effective gross income.
Break-even occupancy
—
(Expenses + debt + reserve) ÷ potential income.
Value at selected market cap
—
NOI ÷ market cap rate.
Effective income → NOI → debt coverage and cash flow → return on equity → value sensitivity.
If rent rises, effective income and NOI may rise. That can improve DSCR and cash flow. But value also depends on the market cap rate: a higher cap rate can reduce value even when NOI improves.