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Underwriting Tools
Quick-reference calculators and benchmarks for evaluating real estate investment opportunities.
Cap Rate Calculator
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Cap Rate = NOI ÷ Purchase Price × 100
Cash-on-Cash Return
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CoC Return = Annual Cash Flow ÷ Total Cash Invested × 100
Debt Service Coverage Ratio (DSCR)
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DSCR = NOI ÷ Annual Debt Service. Lenders typically require 1.20x or higher.
Market Benchmarks
| Metric | Typical Range | Notes |
|---|---|---|
| Cap Rate (Self-Storage) | 5.0% – 7.5% | Secondary/tertiary markets trend higher |
| Cap Rate (Multifamily) | 4.5% – 6.5% | Varies by market class |
| DSCR Minimum (Most Lenders) | 1.20x | Some bridge lenders accept 1.10x |
| Cash-on-Cash Target | 7% – 12% | Varies by strategy and leverage |
| LTV (Acquisition) | 65% – 75% | Conventional; bridge may go higher |
| Vacancy Assumption | 5% – 10% | Stabilized assets |
These tools are provided for informational purposes only and do not constitute financial or investment advice. Always consult a qualified professional before making investment decisions.