Decision Calculator

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Open Investment Decision Calculator

What it does

The calculator lets you test whether the property is worth buying under different combinations of:

• Purchase price from $2.0M to $3.495M.
• A dedicated 6% cap test scenario: $3.0M purchase, $250k work budget, $3,000 1BR rents, $3,800 2BR rents, and optional $2M debt at 6%.
• Rent assumptions from conservative fallback to premium upside.
• Budget strategy: Amir's $250k question preset, barebones owner-sourced, owner-sourced fuller, lean professional, standard market-rate repositioning, or premium everything-hired-out.
• Editable budget line items:

- Unit refresh / renovation. - Furniture, housewares, decor. - Exterior, landscaping, planters, curb appeal. - Legal, RSO counsel, inspections, permits. - Building systems / roof / plumbing / electrical reserve. - Startup, utilities, insurance, carry, launch costs. - Contingency.

• Vacancy / credit loss.
• Operating expenses.
• Reassessed property tax.
• Closing costs.
• Optional debt-service coverage test.

Decision rule

The base rule is:

NOI = gross rent × (1 - vacancy) × (1 - operating expense %) - property tax
Total basis = purchase price + closing costs + budget stack
Yield = NOI / total basis

Then:

• GO means yield clears the target return and, if enabled, debt coverage clears the minimum DSCR.
• MAYBE means it is close enough to justify more diligence or negotiation.
• NO-GO means the assumptions do not justify the purchase price.

Budget philosophy

The calculator separates cost strategies because the family can plausibly create value by sourcing well and doing some work directly. Examples:

• Sourcing decorative items, planters, textiles, tile, lighting, or furnishings at better-than-retail rates.
• Using Mexico sourcing trips for tasteful decor and outdoor pots.
• Propagating succulents and building landscaping inventory cheaply over time.
• Doing low-risk DIY work where the opportunity cost and execution risk make sense.
• Directly finding good tradespeople instead of paying fully marked-up GC pricing for every line item.

But the model keeps hard categories visible so that savings in decor or DIY do not hide the serious costs:

• Legal / RSO counsel.
• Inspections.
• Permits.
• Electrical / plumbing / HVAC.
• Roof / drainage / waterproofing.
• Insurance.
• Carry costs.
• Contingency.

How to interpret green cells

A green cell does not mean “buy automatically.” It means the scenario is financially plausible enough to keep investigating. A true buy decision still depends on:

• Legal 8-unit status.
• Clean vacancy and tenant history.
• Real contractor bids.
• Confirmed lease model.
• Verified rents.
• Financing terms.
• Insurance availability and pricing.
• Property-condition reports.

Related notes

• 6 Percent Cap Test
• Investment Analysis
• Cost Model
• Rent Comps
• Renovation and Operations
• Due Diligence Questions