Pro Tier Module
Cap Rate / NOI Analyzer
Underwrite an income property in the browser - exact NOI, both cap-rate views, and the lender ratios.
This tool runs inside GDBS Pro. What it computes and the authorities it applies are below.
The problem
Brokers, appraisers, lenders, and investors juggle rents, vacancy, expenses, price, and financing across spreadsheets where one mislabeled line - say debt service slipped into operating expenses - quietly distorts NOI, the cap rate, and the whole deal.
The local-first solution
This plugin computes the full income-capitalization build-up with exact f64 arithmetic over cited appraisal and finance identities, entirely client-side, with every figure a deal-specific input you supply and nothing uploaded to anyone's cloud.
What it does
Effective Gross Income and NOI build-up (EGI = GPI + other income - vacancy; NOI = EGI - operating expenses, debt service correctly excluded)
Direct capitalization both ways: going-in cap rate on an entered price (R = NOI / Value) and indicated value at a target cap rate (Value = NOI / R)
Debt-Service Coverage Ratio (NOI / annual debt service) for lender underwriting
Before-Tax Cash Flow and Cash-on-Cash return (BTCF / total cash invested)
Gross Rent Multiplier and Operating Expense Ratio
Debt service entered directly, as monthly P&I, or amortized from loan amount, rate, and term via the level-payment annuity formula
Honest scope
All arithmetic is exact f64 over the cited income-capitalization identities, with no year- or jurisdiction-indexed constants - every figure is a deal-specific input, so the result is only as good as the rents, vacancy, expense, and cap-rate numbers you enter. This is direct capitalization only: it does not model a multi-year DCF/IRR, reversion, lease-up, expense recoveries, depreciation, or after-tax cash flow, and it is not investment, tax, appraisal, or financial advice (an appraisal must follow USPAP).
Authorities cited
- Appraisal Institute, "The Appraisal of Real Estate" (14th/15th ed.) - definitions of Net Operating Income (operating expenses exclude debt service, income tax, depreciation, and capital expenditures) and the income-capitalization approach.
- Direct-capitalization identity (IRV): Value = Income / Rate, equivalently Income = Value x Rate and Rate = Income / Value. Standard appraisal relationship; "The Appraisal of Real Estate", Direct Capitalization chapter.
- Cap rate definition: Capitalization Rate = Net Operating Income / Property Value (or purchase price for the going-in cap). CCIM Institute, "Introduction to Commercial Investment Real Estate Analysis (CI 101)".
- Effective Gross Income: EGI = Potential Gross Income + Other Income - Vacancy & Collection Loss. "The Appraisal of Real Estate", income & expense estimation.
- Cash-on-Cash return = Before-Tax Cash Flow / Total Cash Invested; Before-Tax Cash Flow = NOI - Annual Debt Service. CCIM CI 101 cash-flow model.
- Debt-Service Coverage Ratio (DSCR) = Net Operating Income / Annual Debt Service. Standard commercial-mortgage underwriting metric (e.g. lender minimums typically 1.20-1.25x).
- Gross Rent Multiplier = Sale Price (Value) / Gross (Potential) Rental Income; Operating Expense Ratio = Operating Expenses / Effective Gross Income. "The Appraisal of Real Estate", multipliers & ratios.
- Level-payment (fully amortizing) loan: PMT = P * i / (1 - (1 + i)^(-n)), i = monthly rate, n = number of monthly payments. Standard ordinary-annuity payment formula (Brealey, Myers & Allen, "Principles of Corporate Finance").
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Run your deal now
Underwrite an income property in your browser - nothing is uploaded to anyone's cloud. Save the run to your Sandbox workspace, attach it to a Worklog deal file, or route the results into a Gate client portal.