NUMBERS & JUDGMENT / UPGRADED EXCEL TOOL
From rent to real cash flow.
A Rental Property Underwriting model that separates the economics of the property from the financing—and counts the capital required to get started.
7 workbook tabs · Rent roll · Two sensitivity tables · Financed or all-cash cases
Free Excel download. No sign-in or email signup required. Open the Start Here tab before editing the inputs.
The decision
At this price and under these assumptions, what cash flow and return does the property produce? Enter verified rents, vacancy, expenses, financing, closing costs, rehabilitation, and initial cash reserves. Review the operating performance before focusing on the leverage-enhanced result.
What is upgraded
A Rent Roll and Inputs feed the Model, Sensitivity tables, and Dashboard. Outputs include net operating income, purchase cap rate, all-in yield, debt service, cash flow after capital reserves, cash-on-cash return, debt coverage, break-even occupancy, and assumption-based purchase-price limits. Start Here and Methods explain what is included in each measure.
The worked example: an 8.2% cap rate is not an 8.2% cash return
The fictional property generates approximately $16,460 of annual net operating income and an 8.2% purchase cap rate. After financing and a capital reserve allowance, monthly cash flow is approximately $321. With $81,000 of initial cash required, the modeled cash-on-cash return is approximately 4.8%.
Use it in three steps
- Enter a verified rent roll and property-specific operating expenses. Do not substitute the rent needed to justify the price for evidence of achievable rent.
- Include closing costs, rehabilitation, capital reserves, and financing. Set the down payment to 100% for an all-cash case.
- Test purchase price, rent, and vacancy changes. Compare the cash required with the downside cash-flow result.
Important boundaries
Net operating income excludes debt service and the capital reserve allowance; investor cash flow includes them. Price limits are mathematical outputs under the entered expense and rent assumptions, not market valuations or offer recommendations. The model does not supply rent comparables, inspections, local restrictions, future tax reassessments, appreciation, or sale proceeds. All examples and financing rates are fictional.
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Free educational model. No email signup is required for the download. Not personalized investment, tax, legal, or lending advice. Verify all property information and obtain appropriate professional review.
