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Property valuation, market analysis, investment ROI calculations, comparable analysis, and rental yield assessment. Use when evaluating real estate investments, analyzing property markets, or calculating returns.
npx skill4agent add travisjneuman/.claude real-estate-analyzerCOMPARABLE SELECTION CRITERIA:
1. Location: Same neighborhood or within 1 mile
2. Recency: Sold within last 6 months (3 months preferred)
3. Size: Within 10-20% of subject GLA (gross living area)
4. Condition: Similar age, updates, and maintenance
5. Style: Same property type (SFH, condo, townhome)
6. Lot: Similar lot size and features
ADJUSTMENT CATEGORIES:
+ / - Location premium/discount
+ / - Size differential ($X per sq ft)
+ / - Bedroom/bathroom count
+ / - Garage, pool, upgrades
+ / - Lot size difference
+ / - Condition adjustment
= Adjusted Comparable Value| Factor | Subject | Comp 1 | Adj 1 | Comp 2 | Adj 2 | Comp 3 | Adj 3 |
|---|---|---|---|---|---|---|---|
| Sale Price | -- | ||||||
| Sale Date | -- | ||||||
| Distance (mi) | -- | ||||||
| GLA (sq ft) | |||||||
| Lot Size | |||||||
| Year Built | |||||||
| Bedrooms | |||||||
| Bathrooms | |||||||
| Garage | |||||||
| Condition | |||||||
| Pool/Upgrades | |||||||
| Adj. Price | -- | ||||||
| Price/Sq Ft | -- |
NET OPERATING INCOME (NOI):
Gross Potential Rent (GPR)
+ Other Income (laundry, parking, storage)
= Gross Potential Income (GPI)
- Vacancy & Credit Loss (typically 5-10%)
= Effective Gross Income (EGI)
- Operating Expenses
- Property taxes
- Insurance
- Management fees (8-12%)
- Maintenance & repairs
- Utilities (owner-paid)
- Landscaping
- Reserves for replacement (3-5%)
= NET OPERATING INCOME (NOI)
PROPERTY VALUE = NOI / Cap Rate| Property Type | Typical Cap Rate | Risk Profile |
|---|---|---|
| Class A Multifamily | 4.0-5.5% | Low |
| Class B Multifamily | 5.5-7.0% | Low-Medium |
| Class C Multifamily | 7.0-9.0% | Medium |
| Retail (NNN) | 5.0-7.0% | Medium |
| Office (Class A) | 5.5-7.5% | Medium |
| Industrial | 5.0-7.0% | Low-Medium |
| Self-Storage | 5.5-8.0% | Medium |
| Hotels | 8.0-12.0% | High |
COST APPROACH:
Land Value (from comparable land sales)
+ Replacement Cost New (current construction cost)
- Depreciation
- Physical (age, wear)
- Functional (outdated features)
- External/Economic (market decline, location)
= ESTIMATED PROPERTY VALUEANNUAL CASH-ON-CASH RETURN:
Annual Pre-Tax Cash Flow / Total Cash Invested x 100
TOTAL CASH INVESTED:
Down Payment
+ Closing Costs
+ Rehab/Renovation Costs
+ Initial Reserves
= Total Cash Invested
ANNUAL PRE-TAX CASH FLOW:
NOI
- Annual Debt Service (mortgage payments)
= Pre-Tax Cash Flow
Target: 8-12% for buy-and-hold residential| Metric | Formula | Good Target |
|---|---|---|
| Gross Yield | Annual Rent / Purchase Price | 8-12% |
| Net Yield | NOI / Purchase Price | 5-8% |
| Cap Rate | NOI / Current Market Value | 5-10% |
| Cash-on-Cash | Cash Flow / Cash Invested | 8-12% |
| DSCR | NOI / Annual Debt Service | 1.25x+ |
| Price-to-Rent | Purchase Price / Annual Rent | 10-15x |
| GRM | Purchase Price / Gross Annual Income | 8-12x |
PURCHASE ANALYSIS:
Purchase Price: $__________
Down Payment (___%): $__________
Loan Amount: $__________
Closing Costs: $__________
Renovation Budget: $__________
Total Cash Required: $__________
MONTHLY INCOME:
Gross Monthly Rent: $__________
Other Income: $__________
Vacancy (___% of GMR): ($__________)
Effective Monthly Income: $__________
MONTHLY EXPENSES:
Mortgage (P&I): $__________
Property Tax: $__________
Insurance: $__________
HOA/Condo Fees: $__________
Property Management: $__________
Maintenance Reserve: $__________
Utilities (owner-paid): $__________
Total Monthly Expenses: $__________
MONTHLY CASH FLOW: $__________
ANNUAL CASH FLOW: $__________
CASH-ON-CASH RETURN: ____%
5-YEAR PROJECTION:
Year 1 Cash Flow: $__________
Cumulative CF (5 yr): $__________
Equity Built (5 yr): $__________
Appreciation (___/yr): $__________
Total Return (5 yr): $__________
Annualized ROI: ____%MONTHLY PAYMENT (P&I):
M = P [ r(1+r)^n ] / [ (1+r)^n - 1 ]
Where:
M = Monthly payment
P = Loan principal
r = Monthly interest rate (annual / 12)
n = Total number of payments (years x 12)
AMORTIZATION SNAPSHOT (Year 1 vs Year 15 vs Year 30):
| Period | Payment | Principal | Interest | Balance |
| ------- | ------- | --------- | -------- | --------- |
| Month 1 | | | | |
| Year 5 | | | | |
| Year 10 | | | | |
| Year 15 | | | | |
| Year 30 | | | | || Factor | Metric | Data Source | Signal |
|---|---|---|---|
| Population Growth | Annual % change | Census, BLS | > 1% = good |
| Job Growth | YoY employment change | BLS, local data | > 2% = good |
| Median Income Growth | YoY change | Census ACS | > 3% = good |
| Supply Pipeline | Permits issued | Census, HUD | Monitor |
| Vacancy Rate | % of units unoccupied | Census, CoStar | < 5% = good |
| Days on Market | Average DOM | MLS data | < 30 = hot |
| Price-to-Income | Median Price / Median Income | Zillow, Census | < 4x = affordable |
| Rent-to-Income | Monthly Rent / Monthly Income | HUD, local data | < 30% = sustainable |
| Category | Weight | Factors to Evaluate | Score (1-10) |
|---|---|---|---|
| Employment | 25% | Job diversity, major employers, growth | |
| Schools | 20% | Ratings, proximity, district reputation | |
| Safety | 15% | Crime stats, trends, perception | |
| Infrastructure | 15% | Transit, roads, walkability, internet | |
| Amenities | 10% | Retail, dining, parks, healthcare | |
| Growth Trend | 10% | New development, rezoning, investment | |
| Affordability | 5% | Price relative to metro, rent trends | |
| Total Score | 100% |
PROPERTY SCORECARD:
Score each factor 1-5, multiply by weight.
| Factor | Weight | Score | Weighted |
| -------------------- | ------ | ----- | -------- |
| Location Quality | 20% | | |
| Cash Flow Potential | 20% | | |
| Appreciation Outlook | 15% | | |
| Condition / CapEx | 15% | | |
| Tenant Demand | 10% | | |
| Financing Terms | 10% | | |
| Management Burden | 10% | | |
| TOTAL | 100% | | __ / 5.0 |
RATING:
4.0-5.0 Strong Buy
3.0-3.9 Buy / Hold
2.0-2.9 Hold / Caution
< 2.0 Pass1031 LIKE-KIND EXCHANGE:
Defer capital gains tax by reinvesting proceeds into "like-kind" property.
KEY RULES:
- 45-day identification period (ID up to 3 properties)
- 180-day closing deadline
- Must use Qualified Intermediary (QI)
- Equal or greater value and debt required
- Same taxpayer name on both transactions
- Cannot receive "boot" (cash or unlike property)
IDENTIFICATION RULES:
1. Three Property Rule: ID up to 3 properties of any value
2. 200% Rule: ID any number, but FMV cannot exceed 200% of relinquished
3. 95% Rule: ID any number if you acquire 95%+ of identified value
COMMON PITFALLS:
- Missing the 45-day or 180-day deadline
- Touching proceeds (must go through QI)
- Attempting related-party exchanges
- Not matching debt levels (creates taxable boot)
- Mixing personal use with investment use1% RULE (screening test):
Monthly Rent >= 1% of Purchase Price
$200,000 property should rent for >= $2,000/month
2% RULE (strong cash flow):
Monthly Rent >= 2% of Purchase Price
Rarely achievable in appreciating markets
50% RULE (expense estimate):
Operating expenses = ~50% of gross rent (excluding mortgage)
Quick NOI estimate = Gross Rent x 0.50
70% RULE (for flips):
Max Purchase = (ARV x 70%) - Repair Costs
ARV = After Repair Value