FOLLOW ALONG
Put the lesson into practice
Use the complete fictional scenario from lesson one. The examples use identical purchase, financing, income and expense assumptions.
- Open Overview after calculating the scenario from lesson one. The tiles show approximately $633 monthly cash flow, 1.41 DSCR and 9.0% cash-on-cash.
- Read monthly cash flow after the entered operating expenses and principal and interest. The model does not deduct your personal income taxes.
- Read DSCR as modeled annual net operating income divided by annual debt service. 1.41 is a coverage ratio; it is not a 41% investment return.
- Check the denominator behind cash-on-cash. This model uses down payment, buyer closing costs and loan fees. Budget separately for repairs, reserves and other property-specific cash needs.
- Treat the score as an output of your inputs and targets. Recheck rent, expenses and financing before relying on the results.
Three measures, three questions
Fictional example using the OneDEAL calculation model| Measure | Example | What it answers |
|---|
| Monthly cash flow | $633.27 | Modeled monthly surplus after entered expenses and debt service |
|---|
| DSCR | 1.41 | Modeled NOI ÷ annual debt service |
|---|
| Cash-on-cash | 9.05% (tile: 9.0%) | Annual cash flow ÷ the model’s cash requirement |
|---|
| Cash Required | $84,000 | $75,000 down + $6,000 closing + $3,000 loan fees |
|---|
The calculation uses $26,018 annual modeled NOI and $18,418.76 annual debt service. Annual cash flow is approximately $7,599.24. Calculations use unrounded values before displaying the tiles.
OneDEAL includes the displayed CapEx allowance in modeled operating expenses. Lenders may calculate NOI and debt coverage differently; this ratio does not establish loan approval.
The $84,000 field is not a complete acquisition budget. Additional cash costs can lower the return you calculate for your own investment. The displayed score is not a purchase recommendation.
Read the full video transcript
One point four one DSCR does not mean a forty-one percent investment return.
Open Overview after analyzing the example from lesson one. Cash flow is about six hundred thirty-three dollars a month. This is modeled income after the entered operating expenses and principal and interest, before personal income taxes.
DSCR is one point four one: annual modeled net operating income divided by annual debt service. Lenders may calculate coverage differently.
Cash-on-cash is about nine percent. OneDEAL divides annual cash flow by the eighty-four-thousand-dollar cash requirement. That covers down payment, closing costs and loan fees. Add repairs and reserves to your own budget before judging the return.
The score reflects your assumptions and targets. It is not a buy recommendation. Recheck rent, expenses and financing. During the free beta, keep your own copy; cloud saving is unavailable.
KEEP LEARNING
Enter expenses correctly
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