Gross Income
$0
Total Expenses
$0
Net Cash Flow
$0
DSCR
0.00
DSCR Quick Check: If DSCR is below 1.25, most lenders won't touch it. Above 1.25 = good. Above 1.50 = great.
Effective Gross Income
$0
Net Operating Income
$0
DSCR
0.00
Lender Ready?
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Key Metrics Explained
🎯 Cap Rate
The return you'd get if you paid all cash. Higher = better cash flow relative to price.
Cap Rate = (NOI / Purchase Price) × 100
Target: 7-10% for value-add deals
💰 Cash-on-Cash Return
Your actual return on the cash you put in. The metric that matters with leverage.
CoC = (Annual Cash Flow / Cash Invested) × 100
Target: 15%+ for good deals
📊 DSCR (Debt Service Coverage Ratio)
Can the property pay its own mortgage? Lenders want to see cushion.
DSCR = NOI / Annual Debt Payment
Minimum: 1.25 for DSCR loans. 1.50+ is strong.
🏠 1% Rule
Quick filter. If monthly rent is 1% of purchase price, worth a deeper look.
Monthly Rent ≥ 1% × Purchase Price
$100K house should rent for $1,000+/mo
🔨 70% Rule (Flips)
Never pay more than 70% of ARV minus rehab. Leaves room for profit.
Max Offer = (ARV × 0.70) - Rehab Costs
Conservative flippers use 65%
💵 NOI (Net Operating Income)
The money left after operating expenses, before debt payments.
NOI = Gross Rent - Vacancy - OpEx (taxes, ins, mgmt, repairs)
BRRRR Explained
Buy - Get it below market
Rehah - Force appreciation
Rent - Stabilize with tenant
Refinance - Pull equity out
Repeat - Do it again
The goal: Get most or all of your cash back out at refinance, so you're playing with house money on a cash-flowing asset.
Quick Reference
Good Cap Rate
7-10%
Good Cash-on-Cash
15%+
Min DSCR
1.25
Strong DSCR
1.50+
OpEx Rule of Thumb
30-40% of rent