Keep this tool focused on real estate decisions that can lead to action.
Compare a potential rental purchase against leaving your capital in a passive investment.
Quick Capital Efficiency Verdict
This section answers the first question: does this scenario appear strong, weak, or somewhere in the middle?
Inputs save automatically in this browser.
Verdict
Borderline
This capital setup may work, but the margin is thin under the current assumptions.
Why this rating was assigned
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Enter Assumptions
Start with the capital position, property assumptions, financing, and growth assumptions. The rest of the page updates automatically.
Capital Position
Property Inputs
Expenses
Financing
Auto-calculated from purchase price, rehab, and down payment.
Current Loan Information
Replacement Property
Growth Assumptions
Performance Snapshot
This is the fast operating snapshot. If the numbers do not hold up here, the long-term story usually does not save it.
NOI
$0
Income after operating expenses, before debt service.
Debt Service
$0
Annual principal and interest payments.
Cash Flow
$0
What is left after debt service.
Cash-on-Cash Return
0.00%
Annual cash flow relative to actual cash invested.
Cap Rate
0.00%
NOI relative to value.
DSCR
0.00x
How comfortably the property covers debt.
LTV
0.00%
How much leverage is being used against the asset.
Annual Return on Capital
0.00%
A broader view that includes more than just cash flow.
Equity Access Limit
Available Equity Based on a Comfortable Leverage Limit
This section separates what equity exists from what equity could actually be accessed without borrowing above the leverage limit you are comfortable with.
Gross Equity
$0
Property value minus current loan balance.
Current LTV
0.00%
Current debt relative to property value.
Maximum Total Debt Allowed
$0
Property value × maximum comfortable leverage.
Additional Accessible Equity
$0
Maximum total debt allowed minus current loan balance.
Net Usable Equity After Costs
$0
Additional accessible equity minus estimated financing costs.
Equity Left Untouched
$0
Gross equity minus additional accessible equity.
Clarifier
$0
This is the total debt ceiling, not new cash available by itself.
Status
Within Limit
Current debt is within the leverage limit entered.
Comparison
This section compares the current capital path against the alternative path under the assumptions entered.
Starting Capital
$0
Capital used as the base for comparison.
Passive Alternative at 30 Years
$0
What the alternative path may become over time.
Real Estate Path at 30 Years
$0
What the real estate path may become over time.
Difference at 30 Years
$0
The gap between the two paths.
30-Year Capital Path Comparison
Year 0
$0
$0
Real Estate PathAlternative Path
What this comparison suggests
The goal is to see whether capital appears to work harder in the current real estate decision path or in the alternative path.
Current vs Future Performance
Select a future year and compare current numbers to projected numbers later.
Metric
Current
5 Years
Property Value
$0
$0
Annual Gross Rents
$0
$0
Operating Expenses
$0
$0
NOI
$0
$0
Cash Flow
$0
$0
Loan Balance
$0
$0
Equity
$0
$0
LTV
0.00%
0.00%
Cap Rate
0.00%
0.00%
DSCR
0.00x
0.00x
Cash-on-Cash
0.00%
0.00%
Total Wealth Creation Over 5 Years
This section breaks long-term performance into the pieces that actually create wealth.
Appreciation Gain
$0
Increase in property value over the selected period.
Loan Paydown
$0
Debt reduced over the selected period.
Cumulative Cash Flow
$0
Total cash flow collected over the selected period.
Total Wealth Gain
$0
Appreciation + paydown + cumulative cash flow.
Cumulative Return on Capital
0.00%
Full-period wealth created relative to initial capital deployed.
