Messages

The Purchase Price indicator will remain Green as long as the purchase price is less than or equal to the current value.  It will turn amber when the value is within 2% or value, and red when the purchase price rises above the current value.  You can see from this example, that the offer price is higher that the current value.

The Operating Expense Ratio indicator will remain green if the expense ratio remains equal to or is lower that the Driver that you specify in the Global Drivers section.  Operating Expense ratio is the portion of income that is utilized for operating expenses, expressed as a percentage.  If you change the expenses (either up or down), the ratio will change and the message will display the results of the change.

The LTV ratio message will remain in the green as long as the proposed debt structure ratio remains below the driver you selected in the Universal Drivers.  It will turn Amber when the LTV ratio is within 2% of the Driver, and Red if the LTV exceeds the Driver limit.

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

The Renovations Assessment is driven by the amount of cash proposed, and the end-result of stabilized value.  In other words, this will tell you how much you can spend on renovations.  If, for example, you intend to spend $200,000 on renovations and the stabilized value of the property doesn't justify the expense - you will see a message advising you to either lower renovation cost, or increase the stabilized value.

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.

 

The resale indicators advise you about the potential returns for the property at the time of resale.