Messages

Notice that the Purchase Price is highlighted in Red. This indicates that the Purchase Price is not supported by the target property's operating income.

The Operating Expense Ratio is falls within the range that you specified in the Drivers Section (in this instance, 30%)

This feature will alert you as to whether or not the renovation costs will be supported by the new rents.

The Stabilized Value is the estimated Value of the Target Property after all renovations are completed, lease-up is completed, and rents are brought to current market levels. If the estimated Stabilized Value is not in-line with targeted minimum returns, the Observations Window alert you to that fact.

The Break-Even Point tells you at a glance exactly how many units must be continually occupied to break-even on the operation of the target property.

The Loan-to-Value (LTV) Ratio window will alert you immediately of the proposed financing structure will be supported the the property's Net Operating Income. This critical number is driven by assumptions that you control in the Drivers Section, based on your lender's underwriting criteria. Typically, lenders want to loan no more than 70 to 80% of a property's value. These percentages vary according the the lender, the property, and of course your financial strength and expertise. Realty Analytics can help you immediately with the latter - and ultimately with the former.

This Key computation tells you and your lender that the target property will support the servicing of the debt. Like the LTV driver, this is also driven by assumptions that you provide in the Drivers Section.

This will tell you at a glance how much cash is required to acquire the target property, and give you the estimated cash on cash return. While not exhaustive in its analysis, the All-In Cash number will provide you will a fairly accurate estimate that includes transfer taxes, closing costs, financing costs and cash down payment.