Instrument No. 06

Run the numbers before the offer.

Three rentals side by side with cash flow, cap rate, cash-on-cash and DSCR; a ten-year projection; and a flip analyzer that solves the maximum offer for the profit you require.

Instrument No. 06

What is inside

Investor Deal Analyzer — rental + flip

The Rentals tab of the Investor Deal Analyzer, comparing three sample deals with purchase and loan terms, income, operating expenses, NOI, cash flow, cap rate, cash-on-cash return and DSCR.

  1. Rentals

    Three deals side by side: NOI, cash flow, cap rate, cash-on-cash, DSCR, expense ratio and break-even occupancy.

  2. Projection

    Ten years of income, expenses, loan balance and equity under the growth rates you choose.

  3. Rehab Budget

    A line-by-line rehab budget at the bid amounts, feeding the flip.

  4. Flip

    Profit, cash needed and return on cash with every cost and a rehab contingency included, the maximum offer for the profit you require, and profit if the sale price or the rehab moves.

  5. Guide

    An 8-page designed guide: every measure explained, worked examples and a due-diligence list.

The method

NOI = effective gross income − operating expenses cash flow = NOI − annual loan payments cap rate = NOI ÷ price · cash-on-cash = cash flow ÷ cash invested DSCR = NOI ÷ annual loan payments maximum offer = solved backwards from ARV, costs and your target profit

Questions

Is it investment advice or an appraisal?

No. It does arithmetic on the figures you verify. Lending, tax and the deal itself are decisions for you and your own advisers.

What about the 1% rule?

The Rentals tab shows it and the gross rent multiplier as quick screens, labelled as rules of thumb. The analyzer never treats them as a test of a good deal.

Are the sample deals realistic?

They only show the analyzer working. They are not market prices, rents, rates or returns; overwrite every brass cell.

Instruments are planning and analysis tools. They are not legal, tax, accounting, financial or appraisal advice, and they do not promise or imply any income or result. Example figures are illustrations, not benchmarks.