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Deal Analysis How-Tos
Every verdict starts with a calculation done right. These guides walk each core metric step by step — inputs, formula, worked example, and the mistakes that skew the answer — and the calculators run the same math instantly.
Guides
How to calculate cap rate (with worked examples) — 2026 guide
Cap rate = NOI ÷ purchase price. Sounds simple, but most investors get NOI wrong by skipping CapEx reserves or vacancy. Here's the formula, three worked examples (good deal / bad deal / cash purchase), and when cap rate is the wrong metric.
7 min readHow to calculate cash-on-cash return on a rental property — 2026 guide
Cash-on-cash return = annual cash flow ÷ total cash invested. It's the only metric that tells you the return on the dollars you actually put in. Here's the formula, what counts as 'total cash invested,' three worked examples, and the trap most calculators fall into.
7 min readHow to calculate DSCR (debt service coverage ratio) — 2026 guide
DSCR = NOI ÷ annual debt service. It's the metric DSCR lenders use to qualify your loan. Here's the formula, what lenders include and exclude, three worked examples, and the difference between your DSCR and the lender's DSCR (which is usually lower).
8 min readHow to calculate ARV (after-repair value): the comps method, step by step (2026)
The number every flip and BRRRR is built on — and the one you can't look up. Why ARV is a forecast of an appraisal, not purchase + rehab: the renovated-comps method step by step, a worked 1,400 sq ft example that reconciles four comps to a $255,000 ARV, the 70% rule max offer and 75% LTV refi math that key off it, and a sensitivity table where a 10% ARV miss cuts flip profit 74% and more than doubles the cash trapped in a BRRRR.
11 min readExit cap rate: how to pick the number that sets your sale price (2026)
The number most investors pick in four seconds and never revisit — the cap rate you assume a future buyer pays. Why exit-year NOI ÷ exit cap sets most of the return on a multi-year hold, a worked $300K duplex where a 1.5-point swing moves the sale price $73,000 and the 5-year IRR from +11.5% to −2.6%, the exit ≥ entry rule, the residential comps caveat, and why a compressing exit cap is a bet on rates, not a rental.
11 min readHow TrueCap's verdict engine decides Strong Buy vs Avoid
The exact cash flow, DSCR, cap rate, and cash-on-cash thresholds TrueCap uses to classify a rental deal as Strong / Solid / Mixed / Marginal / Negative — pulled directly from the production code.
10 min readCalculators for this
Cap Rate Calculator
Capitalization rate from price, rent, and operating expenses.
Cash-on-Cash Return Calculator
Return on the actual cash invested in a rental.
DSCR Calculator
Debt Service Coverage Ratio — the metric every investment-property lender uses.
Rental Property ROI Calculator
Total return — cash flow + principal paydown + appreciation in one number.
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