How do downside, break-even and maximum-offer figures work?

Cash flow after reserves deducts a planning allowance for major repairs from modeled monthly cash flow. The downside scenario reduces rent and changes vacancy. Break-even rent is the monthly income needed to cover the modeled costs under your assumptions.

At the top of the report, AI Investment Analysis summarizes the saved analysis. The purchase-guidance card shows a base-case buy ceiling and a lower downside-tested ceiling using default targets of $100 monthly cash flow after reserves, 6% cash-on-cash and 1.2 debt coverage when financed. The downside assumes 10% less rent, 20% higher expenses and reserves, and at least 10% vacancy. These are planning targets, not a guarantee of profit.

In a saved report, open Maximum Offer and enter your minimum cash flow after reserves, cash-on-cash return or debt coverage target. Leave unused targets blank; zero remains a target. Set the price range and choose whether down payment stays a percentage or a fixed dollar amount.

You can require the same targets in a downside case with lower rent, higher expenses or different vacancy. The solver uses the saved report assumptions. If targets still pass at the top of your search range, raise that ceiling to find the limit. No qualifying result means no tested price in that range met all required targets.

Apply This Purchase Price to Report saves the solved price and financing assumptions. The provider market-value estimate stays separate. A computed offer is not an appraisal, lender approval or promise of profit; confirm leases, unit coverage, taxes, insurance, financing and condition before buying.

Related articles