Analysis DemoPublic QA route
Stable demo scenarios for trust QA
This route exposes fixed underwriting scenarios with visible formula traces. It is intended for QA and trust review, not live property analysis.
Scenarios
Selected scenario
Rental - bad case
A rental case with weak carry and poor support at the current basis.
Focus strategy
Long-Term Rental
Highest-scoring strategy
Long-Term Rental
Recommended strategy
Not recommended
Recommendation status
not_recommended
Verdict
Pass
Data confidence
88% (High)
Recommendation confidence
11/100
Comp count
4 comps
Formula trace
Monthly rent
monthlyRent = input.monthlyRentinput.monthlyRent = $1,750.00$1,750.00
Annual gross rent
annualGrossRent = monthlyRent * 12$1,750.00 * 12$21,000.00
Vacancy percent
vacancyPct = monthlyVacancyLoss / monthlyRent$87.50 / $1,750.005.00%
Vacancy dollar amount
annualVacancyLoss = monthlyVacancyLoss * 12$87.50 * 12$1,050.00
Effective gross income
effectiveGrossIncome = annualGrossRent - annualVacancyLoss$21,000.00 - $1,050.00$19,950.00
Property management percent
propertyManagementPct = monthlyManagement / monthlyRent$140.00 / $1,750.008.00%
Property management base
propertyManagementBase = annualGrossRentannualGrossRent = $1,750.00 * 12$21,000.00
Property management dollar amount
annualPropertyManagement = monthlyManagement * 12$140.00 * 12$1,680.00
Taxes
annualTaxes = monthlyTaxes * 12$304.17 * 12$3,650.04
Insurance
annualInsurance = monthlyInsurance * 12$110.00 * 12$1,320.00
Maintenance
annualMaintenance = monthlyMaintenance * 12$260.00 * 12$3,120.00
Capex
annualCapex = monthlyCapex * 12$260.00 * 12$3,120.00
Total operating expenses
annualOperatingExpenses = annualVacancyLoss + annualPropertyManagement + annualTaxes + annualInsurance + annualMaintenance + annualCapex + annualHoa + annualUtilities$1,050.00 + $1,680.00 + $3,650.04 + $1,320.00 + $3,120.00 + $3,120.00 + $0.00 + $0.00$13,940.04
NOI
annualNOI = annualGrossRent - annualOperatingExpenses$21,000.00 - $13,940.04$7,059.96
Monthly debt service
monthlyDebtService = PMT(interestRatePct / 12, loanTermYears * 12, loanAmount)PMT(6.50% / 12, 30 * 12, $251,250.00)$1,588.07
Annual debt service
annualDebtService = monthlyDebtService * 12$1,588.07 * 12$19,056.85
Monthly cash flow
monthlyCashFlow = annualCashFlow / 12-$11,996.89 / 12-$999.74
Annual cash flow
annualCashFlow = annualNOI - annualDebtService$7,059.96 - $19,056.85-$11,996.89
DSCR
dscr = annualNOI / annualDebtService$7,059.96 / $19,056.850.37
Cash required
totalCashRequired = purchasePrice * downPaymentPct + adjustedRehabCost + closingCosts + reserves$335,000.00 * 25.00% + $16,500.00 + $10,050.00 + $0.00$110,300.00
Cash-on-cash return
cashOnCashReturn = annualCashFlow / totalCashRequired-$11,996.89 / $110,300.00-10.88%
Cap rate
capRate = annualNOI / purchasePrice$7,059.96 / $335,000.002.11%
Gross yield
grossYield = annualGrossRent / purchasePrice$21,000.00 / $335,000.006.27%
Warnings
- Demo only. Sample values, not live underwriting.
- This case is expected to fail the recommendation gates.
Expected failure reason
Negative monthly cash flow and weak DSCR keep the rental case below the recommendation floor.
Recommendation blockers
- cash on cash return is -10.9%, below 8.0%
- monthly cash flow is -$1,000, which is not positive
- DSCR is 0.37, below 1.10
Assumptions snapshot
Purchase price
$335,000
Rehab budget
$15,000
Monthly rent
$1,750/mo
Nightly rate
Not provided
Occupancy
Not provided
Holding timeline
6 months
Interest rate
6.5%
STR regulation status
unknown
Refi LTV
75.0%
Refi closing costs
2.0%
Seasoning
6 months
Minimum refi DSCR
1.20
Sale costs
8.0%
Decision reasons
- Rental scores highest because it projects -$1,000/mo cash flow, -10.9% cash on cash return, and 0.37 DSCR.
- Verdict is Pass because Rental scores highest, but it is not recommended because cash on cash return is -10.9%, below 8.0%.
- Trust is weakened because the winning strategy is sensitive to stress-test changes.