Underwriting
Commercial real estate deal analysis and rate-cap modeling
Going-In Cap
5.46%
DSCR
0.95x
LTV
70.0%
Debt Yield
7.79%
Cash-on-Cash
-0.86%
Levered IRR
8.5%
Underwriting Flags (4)
DSCR below 1.25x lender minimumRate shock breaks DSCR below 1.0xDebt yield below 8% thresholdNegative cash-on-cash return
Deal Inputs
$
$
$
$
%
Rate Cap Configuration
%
%
%
Rate Cap Mechanics
All-in rate = 5.25% + 2% = 7.25%
Cap limits index to 5.5%, max effective = 7.50%
Monthly payment (30yr amort): $136,094
Annual debt service: $1.63M
NOI: $1.55M
Index Rate Shock Analysis
-3.00%0%+5.00%
New Index5.25%
Uncapped Rate7.25%
Effective Rate7.25%
Shocked DSCR0.95x
Exit Analysis
NOI at Exit (Year 5)$1.82M
Exit Valuation$33.12M
Remaining Loan Balance$18.83M
Net Sale Proceeds$13.63M
Equity Multiple2.51x
Levered IRR8.52%
Total Equity Invested$9.12M
Annual Cash Flow (Year 1)-$78,130
DSCR Sensitivity Matrix
| Rate / NOI | -10% | -5% | +0% | +5% | +10% |
|---|---|---|---|---|---|
| -1% | 0.95x | 1.00x | 1.05x | 1.11x | 1.16x |
| +0% | 0.86x | 0.90x | 0.95x | 1.00x | 1.05x |
| +1% | 0.84x | 0.88x | 0.93x | 0.98x | 1.02x |
| +2% | 0.84x | 0.88x | 0.93x | 0.98x | 1.02x |
| +3% | 0.84x | 0.88x | 0.93x | 0.98x | 1.02x |
Annual Cash Flow Projection
| Year | Cash Flow |
|---|---|
| Investment | -$9.12M |
| Year 1 | -$78,130 |
| Year 2 | -$28,030 |
| Year 3 | $23,622 |
| Year 4 | $76,873 |
| Year 5 | $13.76M |