Sample deals

Two worked examples, with the numbers the model produced.

Neither is a closed transaction. The single-family property is a real address that was really sourced and underwritten, and no offer was made on it. The multifamily deal is constructed. There is no such building, and the inputs it is built from are listed on the page.

Example 01 · Single-family

1813 Linden Ave, Memphis, TN 38104

Single-family · 3 bed / 1 bath · 1,884 sqft · built 1892 · vacant

Real address · no offer made

A real property, sourced from county deed records and underwritten by this platform. The figures below are its actual model output. It was never offered on and no contract exists, so this is an underwriting example, not a transaction record.

As-is value

$307,064

ESTIMATE · median $162.99/sqft across 10 arm's-length recorded sales

Vendor AVM cross-check

$317,000

VENDOR · condition-blind

Repair budget

$80,078

ESTIMATE · medium scope, $42/sqft × TN cost factor + 10% contingency

After-repair value

$383,841

ESTIMATE · ceiling-bound; uncapped uplift was $431,184

Flipper screen

$188,611

70% of ARV less repairs. What a flipper can pay

Financed rental screen

$189,596

Price at which NOI covers debt 1.20×. What a landlord can pay

Margin tier would allow

$226,996

ARV × 80% less repairs. NOT the offer, no counterparty reaches it

Maximum allowable offer

$189,596

The lower of the tier and the best counterparty. Rental screen binds

Offer to the seller

$179,596

MAO less a $10,000 disposition spread

Net spread at MAO

$60,477

After repairs, selling, holding and buy-side closing

Property tax

$3,733

MEASURED · county record, tax year 2025

Market rent

$2,180 / mo

VENDOR · rent model, 15 comparables. Not a signed lease

Year-1 NOI

$14,317

Before reserves and debt service

Going-in cap rate

7.55%

NOI ÷ purchase price

Yield on cost

5.24%

NOI ÷ total project cost including repairs and closing

DSCR

1.20×

At 75% LTV, 7.5%. Exactly the lender floor, because that screen set the price

The read

Viable as a disposition at or below $189,596. The margin tier would have allowed $226,996 and the deal was originally priced there; every simulated counterparty passed, because neither a flipper nor a financed landlord can reach that number. Still not viable as a levered rental hold: the asset yields 5.24% on total cost against 7.5% debt, so leverage subtracts, and that conclusion survives every sensitivity tested.

What is not known

No interior inspection. Condition is UNKNOWN on a house built in 1892, against an $80,078 repair estimate. The single largest uncertainty here.
Comps run $136.61 to $252.39 per square foot. That dispersion is wider than an acquisition margin.
Every expense line except the tax bill is a percentage convention, not a quote.
The two counterparty screens land $985 apart. That convergence is why the ~$189,000 figure is treated as the clearing price rather than an artifact of either rule.

The workbook (Excel)Document set (PDF)

Example 02 · Multifamily

Illustrative. 40-unit garden-style apartments, Memphis, TN

40 units · 34,680 sqft · 1970s vintage · garden-style

Constructed example · no such property

This building does not exist. It is not a closed deal, not a live deal, and not an offer. The unit mix, rents and expense lines are figures chosen to be plausible for 1970s-vintage garden-style product in this market, and they exist to exercise the institutional model end to end. Everything it is built from is listed below, so the output can be reproduced.

Units

$90,000

Price per unit

$103.81

Price per sqft

$3,708,000

Total capitalisation

What the example is built from

Unit mix

12 × 1BR/1BA at $925 · 16 × 2BR/1BA at $1,150 · 8 × 2BR/2BA at $1,295 (one non-revenue) · 4 × 3BR/2BA at $1,495

In-place rents

Set below market on every type, which is what produces the loss to lease

Other income

$2,400/month

Operating expenses

Eight itemised lines: taxes $47,500 · insurance $28,800 · utilities $43,200 · R&M $36,000 · contract services $14,400 · payroll $52,000 · G&A $10,800 · marketing $7,200

Purchase price

$3,600,000, or $90,000/unit

Operating statement, year 1

Gross potential rent

$550,080

Less: loss to lease

($30,780)

Less: non-revenue units

($15,540)

Plus: other income

$28,800

Potential gross income

$532,560

Less: vacancy, credit loss, concessions

($39,942)

Effective gross income

$492,618

Less: operating expenses (itemised)

($259,605)

Net operating income

$233,013

Less: replacement reserves ($300/unit)

($12,000)

Cash flow before debt service

$213,624

Returns, 10-year hold

Going-in cap rate

6.47%

Debt yield

9.96%

Year-1 DSCR

1.355×

Unlevered IRR

9.23%

Levered IRR

12.67%

Equity multiple

2.96×

NOI per unit

$5,825

Economic vacancy

15.68%

The read

Financeable at 1.355× coverage and a 9.96% debt yield. The interesting number is economic vacancy at 15.68% against 6.00% physical. The gap is loss to lease, non-revenue units, concessions and bad debt, and it is the figure a lender asks for.

What the model carries

·Unit mix by type, per-unit and per-sqft

·Itemised operating expenses, not a ratio

·Economic vacancy beside physical

·Reserves at $/unit/year

·10-year DCF, levered and unlevered

·Debt schedule with DSCR by year

·Exit on forward (N+1) NOI

·LP/GP waterfall with promote

·IRR sensitivity on cap and rent growth

The workbook (Excel)Print view (PDF)

Both workbooks are live-formula: change an assumption and everything downstream moves. Every output reconciles to the underwriting engine to the cent.

How these numbers are produced