Methodology

How Property Rollup calculates and presents investment metrics.

A plain-English guide to the app’s underwriting methodology: calculated returns, visible assumptions, confidence signals, stress testing, and review prompts.

MethodologyCoC returnCap rateAssumptionsConfidence

Start with the assumption stack

Every useful underwriting result depends on inputs: purchase price, down payment, debt terms, rent, vacancy, taxes, insurance, repairs, management, reserves, and closing or rehab assumptions. Property Rollup’s goal is to keep those drivers visible next to the output metrics.

Use multiple metrics together

CoC return, cap rate, monthly cash flow, debt pressure, rent confidence, data quality, and deal score each answer a different question. A strong candidate should survive more than one lens, especially in Florida where insurance and flood context can change the economics quickly.

Treat scores as triage, not truth

Deal score and confidence fields are meant to help sort and prioritize review. They are not predictions, appraisals, or recommendations. The stronger workflow is to use the score to decide what to inspect next.

MetricWhat it helps answerWhat can distort it
Cash-on-cash returnHow much pre-tax cash flow is produced relative to cash investedOptimistic rent, low reserves, ignored repairs, financing changes, or insurance surprises.
Cap rateHow the unlevered income yield compares across properties or marketsBad NOI assumptions, missing expenses, one-time concessions, and property condition.
Cash flowWhether the property appears to produce monthly surplus after recurring assumptionsTaxes, insurance, vacancy, repairs, management, HOA, utilities, and debt terms.
Rent confidenceHow much support the app has for relying on the rent estimateThin comps, stale listings, unusual property condition, or local restrictions.
Data qualityHow complete and internally usable the available record appearsProvider gaps, missing fields, stale records, duplicates, or unmodeled local facts.

Are the formulas financial advice?

No. The formulas are informational underwriting tools. They are not financial, legal, tax, insurance, lending, appraisal, or investment advice.

Why does Property Rollup show confidence signals?

Because the same return estimate is less useful when the underlying rent, expense, location, or source data is weak. Confidence signals help users decide where to verify first.