Productivity
Underwrite a rental property
Cash flow, returns and the expenses most spreadsheets forget.
Fill it in
What you are looking at.
Financing, rent, and anything local you know.
Vacancy, capex reserve, management, turnover.
Your prompt
Underwrite [the listing]. Assumptions: [your assumptions] Include the expenses that get left out, which is why most spreadsheets show a deal that works: vacancy, a capital reserve, management even if you self-manage, turnover costs, and maintenance at a realistic percentage rather than an optimistic one. Those four turn a positive cash flow negative in a normal year. Use the actual local numbers you can find for tax, insurance and rent, and label the ones you had to estimate. Report cash-on-cash, cap rate and the break-even occupancy. That last one is the risk measure and nobody quotes it. Say what would have to be true for this to work, and how likely that is.
Use Underwrite a rental propertyOpens with everything above already filled in.
Why this works
Most rental spreadsheets show a deal that works because they omit vacancy, a capital reserve, management and turnover. Those four turn a positive cash flow negative in a normal year. This includes them, and reports break-even occupancy, which is the risk measure nobody quotes.