Deal Analysis

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Gross Monthly Rent

Total rent collected before any deductions or reserves.

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Vacancy Reserve

Reserve for months the unit sits empty — default 8% of gross rent.

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Effective Gross Income (EGI)

Gross rent minus vacancy — the realistic income baseline.

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Property Management

Fee for a manager to handle tenants, repairs, and rent collection — default 10% of EGI.

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Maintenance & Repairs Reserve

Reserve for routine repairs and upkeep — default 12% of EGI.

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Capital Expenditure (CapEx) Reserve

Reserve for major replacements (roof, HVAC, appliances) — default 8% of EGI.

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Property Insurance

Monthly insurance premium for the property.

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Property Tax

Monthly property tax obligation.

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Total Operating Expenses

All recurring costs: management + maintenance + capex + insurance + tax.

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Debt Service (Monthly Mortgage)

Monthly mortgage payment on the refinanced loan.

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Monthly Cash Flow

What you actually keep after all expenses and debt service.

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Break-Even Rent

The minimum rent needed for $0 monthly cashflow.

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Refinance Loan-to-Value (Refi LTV)

How much of the property's value you borrow at refi — 75% pulls more cash, 70% has better cashflow.

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Cash Left in Deal

Capital trapped after refi — the denominator of your CoC return.

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Negative Cashflow Flag

Critical flag: the property loses money every month after stabilization.

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Cashflow Score Component

0-25 points based on how well monthly cashflow clears your minimum threshold.

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ROI / CoC Score Component

0-25 points based on cash-on-cash return vs your minimum threshold.

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Timeline Risk Score Component

0-15 points based on how much the P90 scenario erodes your returns.

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Market Absorption Score Component

0-15 points based on average days on market — fast markets score higher.

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ARV Confidence Score Component

0-20 points based on comp quality — high confidence + tight spread = full score.

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P90 Stress Test

Adverse scenario: 90th percentile timeline + cost overruns based on your confidence level.

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Acquisition Channel

The source of a deal — Wholesale, MLS, Off-Market, Auction, or Network.

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ARV Validation

Comparing your estimated ARV against comp-derived and county-assessed values.

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