Sample report — illustrative only
4218 Maple Ridge DriveIndianapolis, IN 46220
A representative midwest single-family long-term rental, modeled on conventional 30-year financing with 25% down. Numbers below are computed from the inputs disclosed at the bottom of this report.
Composite verdict
B+78/ 100
A defensible long-term rental with healthy debt coverage and comfortable stress-test resilience. The deal clears every lender threshold but trails the top quartile on cash-on-cash. We would proceed; we would also push on price.
Pulled it up
- +DSCR 1.42
- +Stress resilience
- +Cap rate 7.1%
Pulled it down
- −CoC 6.4%
- −1% rule fail
- −GRM 11.6
Cash flow snapshot
| Line item | Monthly | Annual |
|---|---|---|
| Gross rent | $1,950 | $23,400 |
| Vacancy reserve (8%) | ($156) | ($1,872) |
| Property management (10%) | ($179) | ($2,153) |
| Maintenance (5%) | ($90) | ($1,076) |
| CapEx reserve (5%) | ($90) | ($1,076) |
| Property tax | ($212) | ($2,540) |
| Insurance | ($95) | ($1,140) |
| Net Operating Income | $1,128 | $13,543 |
| Debt service (P&I) | ($793) | ($9,514) |
| Cash flow | $335 | $4,029 |
Investor metrics
Cap rate
7.10%
NOI $13,543 ÷ price $245,000
Above market
Cash-on-cash return
6.41%
$4,029 ÷ $62,850 cash invested
Below top quartile
DSCR
1.42
NOI ÷ debt service. Lender comfort ≥ 1.20
Lender-ready
Five-year IRR
14.8%
Includes modeled exit at 3% appreciation
Healthy
Total ROI (Year 1)
11.9%
Cash + principal + appreciation
Strong
Break-even ratio
79%
OpEx + debt ÷ gross rent. Comfort < 85%
Comfortable
Rules of thumb
| Rule | Result | Threshold | Verdict |
|---|---|---|---|
| 1% rule | 0.80% | ≥ 1.00% | Fail |
| 2% rule | 0.80% | ≥ 2.00% | Fail |
| 50% rule (estimated OpEx) | 42% | ≤ 50% | Pass |
| $100/door | $335 | ≥ $100 | Pass |
| Gross Rent Multiplier | 10.5 | ≤ 12 (typical) | Pass |
The 1% and 2% rules are inherited from a different rate environment. The deal's failure on both is not disqualifying given DSCR and IRR strength; it is information about pricing.
Stress tests
Vacancy stress
- Base (8%)+$335 / mo
- Stress (15%)+$200 / mo
- Severe (20%)+$103 / mo
- Crisis (25%)+$5 / mo
Interest rate stress
- Base (7.25%)+$335 / mo
- +100 bps+$210 / mo
- +200 bps+$82 / mo
- +300 bps−$48 / mo
Rent decline stress
- Base+$335 / mo
- −5%+$237 / mo
- −10%+$140 / mo
- −15%+$42 / mo
CapEx catastrophe (Year 1)
- Base+$4,029 yr
- $10K event−$5,971 yr
- $25K event−$20,971 yr
- $50K event−$45,971 yr
The deal stays cash-flow positive through a doubling of vacancy, a 15% rent decline, and a 200 bps rate move. It does not survive a single major uninsured CapEx event in year one. Reserve recommendation: $12,000 minimum.
Opportunity cost benchmark
| Where else $62,850 of cash could go | 5-yr expected total return | Liquidity | Effort |
|---|---|---|---|
| This deal | ~ 14.8% IRR | Low | High |
| S&P 500 index | ~ 9% historical | High | None |
| Vanguard REIT (VNQ) | ~ 8% | High | None |
| 10-yr Treasury | ~ 4.3% | Medium | None |
| High-yield savings | ~ 4.5% | High | None |
The deal's premium over passive alternatives compensates for illiquidity, single-asset concentration, and operational effort. Whether that premium is sufficient is a judgment call.
Inputs and assumptions disclosed
Property and financing
- Purchase price
- $245,000
- Closing costs
- $7,350 (3%)
- Down payment
- $61,250 (25%)
- Loan amount
- $183,750
- Interest rate
- 7.25%
- Loan term
- 30 years
- Property tax
- $2,540 / yr
- Insurance
- $1,140 / yr
Operating assumptions
- Gross monthly rent
- $1,950
- Vacancy
- 8%
- Property management
- 10%
- Maintenance
- 5%
- CapEx reserve
- 5%
- Appreciation (modeled)
- 3% / yr
- Rent growth (modeled)
- 3% / yr
- Holding period
- 5 years
Disclosure
This sample report uses synthetic inputs constructed to demonstrate the full output. It is not a recommendation to buy any property. Any real report you generate uses inputs you provide, and the methodology version is stamped on the cover sheet so you can reproduce or audit the output.