The deal
Price, loan and the cash you'll need
Down payment (type % or $)Loan $747,500 · mortgage $4,973/mo (principal + interest)
Loan term
Down payment$747,500
Closing costs$12,000
Repairs at purchase$15,000
Upgrades$0
Total cash needed$774,500
Units
Market rent is what each unit could rent for today. Current rent is what the tenant pays now; leave it blank if the unit is vacant.
1
2
3
4
Income at market rents$10,920/mo
Income at current rents$10,020/mo
Vacancy & expenses
% of rent lost to empty units
$546
% of price per year
$1,557
per year
$400
% of collected rent, 0 if self-managed
$830
% of rent for everyday fixes
$546
% of rent saved for roof, HVAC, appliances
$546
water, sewer, trash, common areas
$450
landscaping, pest, HOA
$0
Operating expenses$4,329/mo
Vacancy comes off the rent, so it isn't in this total. The mortgage is counted separately too.
ALMOST THEREMarket rents
3 of 4 targets met
Max offer $1,452,000
2.8% below your $1,495,000 offerOr keep your $1,495,000 offer: total rent of about $11,210/mo (now $10,920) would meet every target.
Your targets
Set to Bay Area benchmarks for 2-4 unit buildings. Change any number, or uncheck one that doesn't apply (debt coverage doesn't matter on an all-cash purchase).
UseMetricThis dealTargetResultMax offer
Cap rate
4.85%
≥%
Pass$1,586,0006% above offer
Cash-on-cash
1.66%
≥%
Miss$1,452,0003% under offer
Debt coverage (DSCR)
1.22
≥×
Pass$1,510,0001% above offer
Cash flow per unit
$268
≥ $/mo
Pass$1,740,00016% above offer
Monthly cash flow
$1,072$12,860 a yearRent multiplier
11.4GRM · price ÷ yearly rentPrice per unit
$373,7504 unitsRent to price
0.73%monthly rent ÷ price (1% rule)Expense ratio
41.7%expenses ÷ income (50% rule)Break-even occupancy
85.2%of full rent needed to cover all costsPrice check
The highest price that still meets each target. Past the dashed line (your offer) means it works at your price.
Offer $1,495,000
Cap rate ≥ 4.5%$1,586,000
Cash-on-cash ≥ 2.0%$1,452,000
DSCR ≥ 1.20$1,510,000
Cash flow ≥ $0/unit$1,740,000
Works at your offerNeeds a lower price
Cash flow
Where the rent goes · Market rents
Vacancy $546/moOperating expenses $4,329/moMortgage $4,973/moCash flow $1,072/mo
| Line | Monthly | Annual |
|---|---|---|
| Gross rent (fully rented) | $10,920 | $131,040 |
| Vacancy (5%) | -$546 | -$6,552 |
| Rent after vacancy | $10,374 | $124,488 |
| Operating expenses | -$4,329 | -$51,951 |
| Net operating income (NOI) | $6,045 | $72,537 |
| Mortgage (principal & interest) | -$4,973 | -$59,678 |
| Cash flow | $1,072 | $12,860 |