Real Estate Stress Test · Estimate
Base, downside and upside Definitions: NOI (net operating income) is operating income after vacancy minus operating expenses, before any loan payment. Cash flow is what is left after the loan payment and your reserve. Cap rate is annual NOI divided by purchase price. DSCR is annual NOI divided by annual principal and interest, and is shown as N/A when there is no loan.
Example: A $300,000 property with 20% down leaves a $240,000 loan. At 6.5% over 30 years the payment is $1,516.96 a month. With $2,400 rent, 5% vacancy, $600 of monthly expenses and a $100 reserve, operating income is $2,280, NOI is $1,680, cash flow is $63.04, cap rate is 6.72%, and DSCR is 1.11. Change the inputs to test your own assumptions.
What to verify next The numbers above are planning estimates built from the amounts you entered. These are checks for you to complete with local quotes, documents, and qualified professionals — they are not advice, verified quotes, or confirmed terms.
Check whether the scenario assumptions, rents, rates, and expenses, are realistic for this specific market. Look up local vacancy data and typical turnover for this property type rather than guessing the vacancy rate. Get current quotes for insurance, taxes, and management instead of using rule-of-thumb percentages. Verify loan terms with a lender, since rate changes and refinance availability drive most of the downside case. Your next step If the numbers survive the stress, the next move is the full deal picture: run the Humble Deal Check, or work through the deal worksheet.
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Planning estimate only. Results depend entirely on the assumptions you enter and assume full amortization, no closing costs, no capital improvements, no taxes on income, and rent collected evenly through the year. It is not a forecast, an appraisal, a lending decision, or financial, tax, or investment advice.