Indicators
Gross Income Multiplier
(GIM)GIM = Total Price / Total annual gross income
1.67
1%
RuleMonthly gross income >= 1% of total purchase price
5.00% (Pass)
CAP
RuleCAP = Annual NOI / Total purchase price
20.00% (>
7.00%)Compare to alternative investments like bonds.
Cash on Cash
returnCash on Cash return = NIAF / Down payment
39.0%
After-tax Cash on Cash
returnAfter-tax Cash on Cash return = Annual NIAT / Down payment
29.8%
Price-to-NOI
multiplePrice-to-NOI multiple = Purchase price / Annual NOI
4.90x
Valuation Constraints
Price Guidance
RangeStrict target to required-yield/financeable ceiling
$599,067 -
$619,996Price guidance spans from Cash Flow to Financing.
Strict Max
PriceLowest valid backend valuation constraint
$599,067The
cash-flow objective currently limits the supported acquisition price.
CAP-Based Target
PriceBackend CAP-based valuation constraint result
$1,457,143
Financing-Constrained
Target PriceBackend financing-constrained valuation result
$619,996
Cash-Flow-Constrained
Target PriceBackend cash-flow-constrained valuation result
$599,067
Purchase Price
PositionCurrent purchase price compared with the price guidance
range
Below range
Limiting
FactorConstraint currently limiting strict max price
Cash Flow
Required
DSCRRequired DSCR = Active required debt service coverage
threshold
1.25x
DSCR
pass/failDSCR pass/fail = Actual DSCR compared with active required DSCR
threshold
Pass
Target NIAT
(Monthly)Target monthly NIAT = Active monthly cash-flow threshold
$1,500
NIAT
shortfallNIAT shortfall = Target monthly NIAT - actual monthly
NIAT
-$985
Income shortfall /
surplusIncome shortfall / surplus = Monthly gross income - break-even
gross income
$3,269
Valuation
warningsBackend valuation warning framework
The monthly cash-flow target is
stricter than the required-yield or financing ceiling.
Income
Annual
NOIAnnual NOI = (Monthly gross income - monthly operating expenses) *
12
$102,000Taxes
are computed separately from average tax rate.
Annual
NIAFAnnual NIAF = Monthly NIAF * 12
$39,230
Monthly financing
costMonthly financing cost = 0 when purchase price equals down payment;
otherwise PMT(interest_rate/12, amortization_years*12, purchase_price -
down_payment)
$5,231
Monthly
NIAFMonthly NIAF = NOI Monthly - Financing costs
$3,269
NOI
marginNOI margin = Monthly NOI / Monthly gross income
34.0%
Operating expense
ratioOperating expense ratio = Monthly operating expenses / Monthly gross
income
66.0%
Break-even gross
incomeBreak-even gross income = Monthly operating expenses + monthly
financing cost
$21,731
Income
cushionIncome cushion = (Monthly gross income - break-even gross income)
/ Monthly gross income
13.1%
Leverage and coverage
Loan
amountLoan amount = Purchase price - down payment
$400,000
Annual debt
serviceAnnual debt service = Monthly financing cost * 12
$62,770
DSCRDSCR =
Annual NOI / Annual debt service
1.62x
Loan-to-valueLoan-to-value = Loan amount / purchase price
80.0%
Future Value Scenario
Current asset
valueCurrent asset value = User-entered scenario asset value, or purchase
price when left blank
$475,000
Annual appreciation /
depreciationAnnual appreciation / depreciation = User-entered annual
asset value change
1.50%
Holding
periodHolding period = User-entered Future Value Scenario holding
period
5 yrs
Annual income
growthAnnual income growth = User-entered annual gross income growth
assumption
2.50%
Annual operating expense
inflationAnnual operating expense inflation = User-entered annual
operating expense growth assumption
3.00%
Exit selling
costExit selling cost = User-entered percentage of future asset value
paid at exit
8.00%
Annual general
inflationAnnual general inflation = Optional user-entered inflation
assumption for inflation-adjusted scenario values
2.80%
Estimated future asset
valueEstimated future asset value = Current asset value * (1 + annual
appreciation rate) ^ holding period
$511,710
Projected annual gross
income at exitProjected annual gross income at exit = Current annual
gross income * (1 + annual income growth) ^ holding period
$339,422
Projected annual
operating expenses at exitProjected annual operating expenses at exit =
Current annual operating expenses * (1 + annual operating expense inflation) ^ holding
period
$229,536
Estimated future
equityEstimated future equity = Estimated future asset value - remaining
loan balance
$264,089
Estimated net sale
proceedsEstimated net sale proceeds = Future asset value - remaining loan
balance - estimated selling costs
$223,152
Estimated selling
costsEstimated selling costs = Future asset value * exit selling
cost
$40,937
Scenario annualized
return estimateScenario annualized return estimate = Simplified
annualized scenario proceeds / initial cash invested
31.3%Illustrative scenario estimate based on user assumptions; not
IRR or a prediction.
Initial cash
investedInitial cash invested = Down payment used as the scenario cash
basis
$100,000
Cumulative operating cash
flow during holding periodCumulative operating cash flow = Sum of annual
after-tax operating cash flow rows during the holding period
$166,993
Projected annual NOI at
exitProjected annual NOI at exit = Projected annual gross income -
projected annual operating expenses
$109,886
Remaining loan
balanceRemaining loan balance = Amortized balance after holding
period
$247,621
Estimated total
proceedsEstimated total proceeds = Cumulative net cash flow + estimated
net sale proceeds
$390,145
Estimated total
profitEstimated total profit = Estimated total proceeds - initial cash
invested
$290,145
Inflation-adjusted future
asset valueInflation-adjusted future asset value = Estimated future asset
value / (1 + annual general inflation) ^ holding period
$445,716
Inflation-adjusted net
sale proceedsInflation-adjusted net sale proceeds = Estimated net sale
proceeds / (1 + annual general inflation) ^ holding period
$194,373
Inflation-adjusted total
proceedsInflation-adjusted total proceeds = Estimated total proceeds / (1
+ annual general inflation) ^ holding period
$339,829
Inflation-adjusted total
profitInflation-adjusted total profit = Estimated total profit / (1 +
annual general inflation) ^ holding period
$252,725
Scenario calculation
notesBackend scenario explanation notes describe which calculation
branches apply
Projected operating cash flow
increases total proceeds during the holding period. Remaining loan balance is deducted
from sale proceeds at exit. Exit selling costs are deducted from future asset value.
Inflation-adjusted values reflect the projected purchasing-power equivalent at the
provided inflation rate.
Future Value Annual Projection
Year 1 operating
projectionAnnual NIAT = Projected annual gross income - projected annual
operating expenses - annual debt service during the active debt period - estimated
tax
$31,001Period 1
yrs; gross income $307,500; operating expenses $203,940; NOI $103,560; debt service
$62,770; tax $9,790.
Year 2 operating
projectionAnnual NIAT = Projected annual gross income - projected annual
operating expenses - annual debt service during the active debt period - estimated
tax
$32,193Period 1
yrs; gross income $315,188; operating expenses $210,058; NOI $105,129; debt service
$62,770; tax $10,166.
Year 3 operating
projectionAnnual NIAT = Projected annual gross income - projected annual
operating expenses - annual debt service during the active debt period - estimated
tax
$33,393Period 1
yrs; gross income $323,067; operating expenses $216,360; NOI $106,707; debt service
$62,770; tax $10,545.
Year 4 operating
projectionAnnual NIAT = Projected annual gross income - projected annual
operating expenses - annual debt service during the active debt period - estimated
tax
$34,598Period 1
yrs; gross income $331,144; operating expenses $222,851; NOI $108,293; debt service
$62,770; tax $10,926.
Year 5 operating
projectionAnnual NIAT = Projected annual gross income - projected annual
operating expenses - annual debt service during the active debt period - estimated
tax
$35,809Period 1
yrs; gross income $339,422; operating expenses $229,536; NOI $109,886; debt service
$62,770; tax $11,308.