Offer Ceiling
The highest purchase price that still meets your targets under the assumptions shown.
Metrics
How it's calculated
Offer Ceiling = work backward from your selected target metrics using the property's modeled NOI and your financing assumptions.
Example
With $32,000 of modeled NOI and a selected 7.5% cap-rate floor, the cap-rate-only Offer Ceiling is $32,000 ÷ 0.075 = $426,666; other selected targets may produce a lower boundary.
Why Offer Ceiling matters
The Offer Ceiling shows where the model stops meeting your targets. Verify rent, financing, taxes, insurance, property condition, and material costs before using it in a negotiation or purchase decision.
Related terms
- Cap Rate
- Net Operating Income ÷ property value. The unleveraged return a property generates, independent of f…
- Cash-on-Cash Return
- Annual cash flow ÷ total cash invested (down payment + closing + rehab). Tells you how hard your mon…
- Deal score
- A 0–100 heuristic summary of the modeled cap rate, cash-on-cash, monthly cash flow, DSCR, and projec…
Where Offer Ceiling shows up in TrueCap
The Offer Ceiling is part of your first complete decision; after that the exact figure comes with Pro. The analyzer works backward from your targets and the assumptions you see and can edit.