Multifamily • 5+ Units

Multifamily Deal Analyzer

Underwrite income property fast: NOI, cap rate, DSCR, cash-on-cash, and a simple value-add view. Paste listing link for reference (we don't auto-pull data).

Listing Link (Reference Only)

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Inputs

Enter realistic numbers. Keep it conservative so the deal doesn’t surprise you later.

Purchase Price ($)

Units

Gross Monthly Rent ($)

Other Monthly Income ($)

Vacancy (%)

Operating Expense Ratio (%)

CapEx Reserve (% of EGI)

Management (% of EGI)

Down Payment (%)

Interest Rate (%)

Amortization (Years)

Closing Costs ($)

Value-Add / Rehab Budget ($)

Projected Rent Increase (Monthly, $)

Tip: If you don’t know expenses, leave the expense ratio at 40–45% as a conservative placeholder (varies by market and property condition).

Results

We calculate “as-is” and “after value-add” (simple view).

Net Operating Income (NOI) / Year

Based on Effective Gross Income minus operating expenses.

Cap Rate (As-Is)

0.00%

NOI ÷ Purchase Price

Monthly Debt Service

Estimated payment (principal + interest)

DSCR

0.00

NOI ÷ Annual Debt Service

Deal Verdict

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GO = DSCR ≥ 1.25, cap ≥ 6%, positive cash flow. NO-GO = DSCR < 1.10 or negative cash flow.

Cash-on-Cash (Year 1)

0.00%

Cash Flow ÷ Cash Invested

Value-Add Snapshot (Simple)

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Shows projected NOI + cap rate after rent bump (not a full pro forma).

Conservative rule of thumb: DSCR ≥ 1.25 is often healthier, but lender standards vary. This tool is for clarity — not financial advice.

📚 Terms & Definitions — Multifamily

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NOI — Net Operating Income

Effective gross income minus all operating expenses before debt service. In commercial real estate, NOI drives property value — not comparable sales.

Cap Rate — Capitalization Rate

NOI divided by property value or purchase price. A 7% cap rate means you earn 7% of the property value annually before debt. Lower cap rates = hotter markets.

DSCR — Debt Service Coverage Ratio

NOI divided by annual debt service. Commercial lenders require minimum 1.20-1.25 DSCR. Below 1.0 means the property cannot cover its own mortgage from income.

EGI — Effective Gross Income

Gross potential rent minus vacancy and credit loss. This is the realistic income you can actually collect — not the theoretical 100% occupied number.

GRM — Gross Rent Multiplier

Purchase price divided by annual gross rent. A quick screening tool — lower GRM means better value. Does not account for expenses so use it as a first filter only.

Value-Add

A strategy of buying a property below its potential NOI and increasing value by raising rents, reducing expenses, or improving occupancy. Since value = NOI ÷ cap rate, higher NOI = higher value.

Vacancy Rate

The percentage of units that are unoccupied in a given period. A 5% vacancy rate on a 10-unit building means half a unit empty on average. Always underwrite with realistic local vacancy.

Cash-on-Cash Return

Annual cash flow after debt service divided by total cash invested. Measures how hard your actual dollars are working — not the property's total return.

Operating Expenses

All costs to run the property excluding debt service — taxes, insurance, maintenance, management, utilities, CapEx reserves. The 50% rule estimates these at half of gross rent for quick screening.