Napkin
Write what you know about the deal. Napkin does the math.
. Made with Napkin.
A blank napkin. Pick an example and make it your own, or start typing: Napkin suggests the words it knows.
Try price 850k, rent 6k/mo, or taxes 8k.
For a tenant: lease Acme 5,000 sf $8 nnn.
For a tax estimate: tax rate 30%.
Anything else stays a note. Amounts are yearly unless you write /mo; a rent too small to be yearly is read as a month.
Ask it: , , , , .
Click or tap a number to slide it and see where the deal stops working.
Alt+↑ or Alt+↓ nudges the number at the cursor.
Easy to forget
The flip
- Price
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- + closing costs
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- + rehab
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- + holding
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- + points
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- Sale at ARV
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- − selling costs
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- 70% rule: pay at most
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The tally per year (today, before the refinance)
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- less vacancy
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- Units
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- Rent per unit monthly
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- Rent per sf yearly
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If pro forma happens
Same price, loan payments and cash in.
- Cash flow a year
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- Cash on cash
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- DSCR
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- Sale price
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- IRR
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Leases
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Living there
- —a month
- And it pays you
- —a month
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Over the hold
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- —Renting comes out ahead.
Assumes you live there the whole hold. Rent elsewhere grows with rent growth. Does not count what your cash in could earn elsewhere.
What a lender sees
An owner-occupied loan (like FHA) is judged mostly on your own income, not on this rental DSCR.
- NOI ÷ debt service
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- Loans ÷ price (LTV)
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- —by —
vs your loan —
If things go wrong
| Year one | NOI | Cash flow | DSCR |
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| Downside | Sale price | IRR |
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Rules of thumb
As if every unit were rented, after you move out.
The 1% and 50% rules are for long-term rentals.
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- half the rent goes to expenses, then the loan. Your numbers: —.
Refinance on the ARV
- Cash to buy and rehab
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- New loan
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- Cash out at the refinance
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- Cash flow after the refinance
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- Equity left in
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The refi
End of year
- Value
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- New loan
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- Pays off
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- Costs
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The sale
- Stabilized value
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- less selling costs
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- less loan payoff
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Partners
- LP cash in
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- LP distributions
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- LP multiple
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- GP cash in
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- GP distributions
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- GP multiple
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- Your check
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- Your share of the LP
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- Your profit
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Your IRR and multiple are the LP's, the same for every LP dollar.
| Year | Deal | LP | GP | You |
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Taxes, roughly (an estimate, not tax advice)
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- Year-1 tax
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- After-tax cash flow
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- After-tax IRR
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- After-tax multiple
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What has to be true
What to offer
Your deals
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What you own
- Price
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- Loans
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- Value today
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- Owed today
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- Equity
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- Cash in
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- Net operating income, yearly
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- less debt service, yearly
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- Cash flow, yearly
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- Cash flow, monthly
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- Cap rate
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- Cash on cash
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- DSCR
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- LTV
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| Place | Equity today | Cash flow, monthly |
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Side by side
Income and cash flow per year. Blue underlines mark the best in each row (the lowest for prices and costs); red marks bad news.
Check the draft against the listing before adding it. NOI and cap claims stay notes.
Comparable sales
| Property | Sale price | Cap | $/sf | $/unit |
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- Comps' median cap
- —vs — this deal
- Comps' median $/sf
- —vs — this deal
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- Value less your price
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| Tenant | sf | Share | $/sf/yr | vs market | Annual rent | Type | Bumps | Expires |
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| Year | NOI | Debt service | Capex | Cash flow | After-tax cash flow |
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