Deal Screener.
Plug in a few key numbers on any multifamily opportunity and see how it screens as an investment — IRR, cash flow, debt coverage, and an at-a-glance verdict.
Cash flow is tight, but IRR and equity multiple are solid — most of the return is realized at exit.
DSCR of 1.23 is acceptable but offers limited buffer. Most agency lenders want 1.25+.
Cash-on-cash of 4.1% is modest. Total return relies more on appreciation than current yield.
Over 79% of total return comes from the sale — IRR is sensitive to the 6% exit cap assumption.
2.29x equity multiple over 5 years means investors nearly double their money — strong on absolute return.
Assumes 5% vacancy, 3% annual NOI growth, 30-year amortization. For screening only — full underwriting requires market comps, T-12, rent roll, and detailed capex modeling.
The math behind the numbers.
Every metric above is derived from the inputs on the left. Here's exactly how each number is built — no black box.
The IRR is solved from this cash flow stream — initial equity out, annual cash flow in, plus net sale proceeds at exit.
This is a screening tool, not full underwriting. Real deals require T-12s, rent rolls, capex budgets, market comps, and stress testing.
Conservative underwriting isn't pessimism. It's protection.
The difference between a deal that returns 18% IRR and one that wipes out investor equity is rarely the headline metrics. It's the assumptions buried inside them. A pro forma is just math, and math will give you any answer you want, depending on the inputs you feed it.
Aggressive rent growth assumptions
Underwriting 5% annual rent growth into year 3 of a 5-year hold can mask a deal that doesn't pencil at market-rate growth of 2-3%. A 200 bps miss compounds quickly across 250 units.
Exit cap compression
Assuming you sell at the same cap rate you bought is risky. Real underwriting stresses the exit cap 50-100 bps higher than today's market, and the deal should still work.
Underestimating expenses
Insurance in Texas alone has doubled in many markets over the past three years. Taxes reassess at sale. Payroll, R&M, and turn costs are all up. A 45% expense ratio that ignores these realities will blow up Year 1.
Thin debt coverage cushion
A DSCR of 1.20 looks fine until occupancy drops 3 points or rates reset on a bridge loan. Conservative operators target 1.30+ at close, with stress tests at 1.15 or better.
A single optimistic assumption, whether a half-point on the exit cap, a percent on rent growth, or a missed line item on insurance, can erase millions in equity over a hold period. In multifamily, you're not just risking returns. You're risking capital calls, forced refinances, and in the worst case, losing the deal.
The best operators we know underwrite to a base case that already assumes things go sideways. If the deal works on conservative assumptions, the upside is a bonus. If it only works on aggressive ones, you don't have a deal. You have a hope.
This screener is provided for illustrative and educational purposes only. The outputs are based on simplified assumptions and do not constitute investment advice, an offer to sell securities, or a recommendation to buy, sell, or hold any specific property. Actual investment performance depends on dozens of variables not modeled here, including market comps, T-12 financials, rent rolls, capex requirements, debt terms, tax treatment, insurance, and local market conditions. Before committing capital to any real estate opportunity, you should conduct comprehensive, third-party-verified underwriting and consult qualified legal, tax, and financial professionals. Momentum Multifamily makes no representations or warranties as to the accuracy, completeness, or suitability of any output from this tool.