Investment Decision Calculator

Decision rule

The model estimates stabilized NOI from selected rent assumptions, subtracts vacancy, operating expenses, and reassessed property tax, then compares NOI against total all-in basis.

GO = stabilized yield meets the target return and, if debt is enabled, DSCR meets the minimum. MAYBE = within 0.50% of target yield. NO-GO = below threshold.

Formula: NOI = Gross Rent × (1 - vacancy) × (1 - operating expense %) - property tax. Total Basis = purchase price + closing costs + selected budget stack. Yield = NOI / Total Basis.

Amir's question preset

This preset answers Amir's exact question, without assuming Amir's assumptions are correct: $3.0M purchase, $250k work budget, $3,000 1BR rents, $3,800 2BR rents, $2.0M loan at 6% interest-only, and 6%+ cap rate at completion.

Important: the simple cap-rate answer treats expenses as one all-in bucket. The stricter calculator answer separates vacancy, operating expenses, property tax, closing costs, and debt service.

Global assumptions

Rent scenario

Target stabilized yield / cap on all-in basis

Vacancy / credit loss %

Operating expense % of collected rent, before property tax

Property tax % of purchase price

Closing / acquisition cost %

Optional financing test

Require minimum DSCR too

If checked, a cell must pass both yield and debt-service coverage.

LTV % if no fixed loan amount

Fixed loan amount? Optional

Interest rate %

Interest-only debt service

Use this for the simple 6% × loan cash-flow test.

Amortization years if not interest-only

Minimum DSCR

Selected case

Purchase price

Budget strategy

Override total budget? Optional

Custom annual gross rent? Optional

Budget strategies

These are intentionally rough scenario stacks. Amir's $250k case is included as a question-answering preset, not as a full recommended budget. The other rows compare barebones owner-sourced work, a fuller owner-sourced budget, normal professional execution, and premium repositioning. Edit the numbers below directly.

GO / NO-GO matrices by rent scenario

Rows are budget strategies. Columns are acquisition prices. Each cell shows GO / MAYBE / NO-GO plus the all-in yield. The model updates as assumptions or budget lines change.

Break-even purchase price by budget strategy

This answers: at the selected target yield and rent assumptions, what is the maximum purchase price before the deal stops clearing the required return?

How to use this

Start with conservative rent and standard/professional costs. If the deal only works under premium rent and heroic costs, assume NO-GO.
Then test how much value your sweat equity and sourcing actually creates: Mexico decor, propagated landscaping, DIY install, direct-to-trade bids, reclaimed/discount fixtures, etc.
Do not let scrappy sourcing hide building-risk items: legal, RSO counsel, inspections, electrical, plumbing, roof, drainage, seismic/structural, insurance, permits, and contingency.
Use GO cells as “worth deeper diligence,” not automatic buy signals. A green model still needs clean legal units, clean vacancy, real bids, financing terms, and verified rents.