DealCooker methodology

NOI: does the property cover its operating costs?

Use modeled NOI to inspect income after vacancy and operating costs, before debt service. Positive NOI is not the cash left after paying the loan.

Cash flow: what remains after debt service?

Use monthly cash flow to inspect the modeled operating surplus or shortfall after required debt payments. Check whether reserves are included; repairs and vacancies do not arrive evenly each month.

Cap rate: how does NOI compare with the property basis?

Use cap rate to relate annual modeled NOI to the strategy’s property basis, not to your down payment. It does not tell you your cash return after the loan payments.

Cash-on-cash return: what does the invested cash produce?

Compare annual pre-tax cash flow with modeled cash invested. Inspect that cash amount, not just the down payment: closing costs and project cash can also matter. A larger down payment changes both debt service and invested cash, so do not assume it improves the percentage.

Net operating income (NOI)

Modeled property income after vacancy and operating costs, before debt service. Depending on the strategy, DealCooker’s modeled NOI may include reserves and fixed costs such as PMI, so it may differ from lender or accounting NOI.

Monthly cash flow

Modeled monthly NOI minus required monthly debt service. DealCooker may also show a view before selected reserves for transparency.

Cap rate

Annual modeled NOI divided by the basis used for that strategy. Most acquisition views use purchase price; BRRRR uses ARV. Because modeled NOI can include financing-dependent fixed costs, treat this as a DealCooker metric—not a universal unlevered cap rate or appraisal.

DSCR

Modeled NOI divided by modeled debt service. A ratio above 1 means NOI exceeds debt service, but lender definitions and thresholds vary.

Cash-on-cash return

Annual pre-tax cash flow divided by modeled cash invested. It is sensitive to leverage and does not replace a full hold-period analysis.

ROI and IRR

ROI measures total modeled gain relative to invested cash. IRR annualizes the timing of initial cash, operations, refinance events, additional contributions, and exit proceeds.

Fees and cash required

Airbnb host fees apply to room revenue plus charged cleaning fees. The long-term rental placement-fee input is informational and excluded from returns; budget actual leasing costs separately. A HELOC amount is the actual draw, not a credit limit. BRRRR cash left after refinance is different from the money needed at the start.