Northwest Realty Source / Investor Tools
Run the numbers on a duplex, triplex, or fourplex. Enter the rents and operating costs, and the analyzer returns a full annual property operating statement, the ratios lenders and investors underwrite to, and what happens when rents step up over the next three years.
Occupancy and VA loan terms
This uses the interest rate and amortization from the financing section, with VA terms layered on top. Property management is left out, since owner occupants almost always self manage, and the down payment stays at zero unless you change it.
| Line item | Annual | % of GOI | Per unit |
|---|
Set expense growth to 3% for a more conservative hold. Debt service is fixed, so every dollar of rent growth lands in cash flow.
Oregon caps annual rent increases on most buildings 15 years and older, and the 2026 maximum is 9.5%, which is where this starts. Only one increase is allowed per 12 months and none during a tenant's first year. Inside Portland, an increase of 10% or more can trigger relocation assistance. Higher figures still model something real, since rent resets to market when a unit turns over.
| Line item | Today | Year 1 | Year 2 | Year 3 |
|---|
| Unit | Sq ft | Today | Year 1 | Year 2 | Year 3 |
|---|
Growth assumptions
Growth starting in year 2 means year 1 runs at today's numbers, which is how most lenders want a first year underwritten. These assumptions are separate from the rent scenarios above, which exist to test an aggressive push rather than a base case hold.
Resale assumptions
Pick a method and the statement adds sale proceeds, profit, and an internal rate of return for a sale at the end of each year. Cost of sale covers commission and closing, and 7% is a reasonable placeholder until you know the deal.
Monthly detail
Each month is that year's annual figure divided by twelve, so the growth assumptions above carry through. It's the view to bring to a client who wants to know what actually hits the account each month.
| Month | Operating income | Operating expenses | Reserves | Loan payment | Cash flow |
|---|
Appreciation assumption
Cash flow is only one of the three ways this property pays. Tenants retire the loan a little more every month, and the building itself moves with the market. This view adds all three together.
| Year | Cash flow | Principal paid | Appreciation | Total return | Return on cash | Property value | Loan balance | Your equity |
|---|
Tax assumptions
Only the building depreciates, not the land, so the land share is carved out first. Residential rental property depreciates over 27.5 years.
| Year | Net operating income | Less interest | Less depreciation | Taxable income | Tax effect | Cash flow before tax | Cash flow after tax | After tax return |
|---|
This is an estimate, not tax advice. A paper loss only helps if you can use it. Passive losses are often suspended until you sell unless you actively participate and your income is under the phase out, or you qualify as a real estate professional. Depreciation is also recaptured when you sell. Run the actual numbers with your CPA before counting on any of it.
Holds net operating income and the down payment percentage constant, and steps the purchase price by $10,000. Your price is highlighted.
| Price | Cash in | Loan | Debt service | Cash flow | Cap rate | C-o-C |
|---|
Holds the purchase price constant and steps the down payment by $20,000. More cash in raises cash flow and debt coverage, and lowers the return on each dollar invested.
| Down payment | Percent | Debt service | DCR | Cash flow | C-o-C |
|---|
Holds the price and net operating income constant and steps the rate by a quarter point. Useful for two questions: what a rate move costs you, and whether buying points pays for itself.
| Rate | Monthly payment | Annual debt service | Cash flow | Per month | DCR | C-o-C |
|---|
Every assumption in this analyzer is yours to set, and the ones that matter most, taxes after reassessment, real vacancy in the submarket, and what the rents will actually support, are the ones worth talking through before you write an offer.
Troy D Doty PC, Principal Broker, Northwest Realty Source, 224 S Hamilton St Ste 300, Portland OR 97239, 503-997-4169. Licensed in Oregon and Washington. This analyzer is provided for planning purposes and relies entirely on the figures you enter. It is not an appraisal, a loan approval, or tax advice. Property taxes commonly change after a sale, insurance and utility costs vary by property, and actual results will differ. Verify all income and expense figures against seller-provided records and confirm loan terms with your lender before making an investment decision.