Product demos
Analyzing a rental you own.
One 5-unit building, its cash flow today, and what lower costs or a rent raise could change. About three minutes, or jump to the part you care about.
Product demo video
Miles and Sarah are AI-generated voices, not PriceDNA employees.
Myles Hi, I'm Myles, and this is Sarah. Today, a rental you already own, and what could change your cash flow.
Sarah Let's see it.
Myles A rental I own. Our example, seven fifteen Elm Street, Lawrence, Kansas. A five unit building.
Myles All two bedrooms, averaging eleven hundred a month.
Myles It's worth about six hundred thousand.
Myles Bought a few years back, with three twenty two left on the loan.
Myles At five point eight five percent, twenty four fourteen a month.
Sarah Five units usually means a commercial loan, so if you refinance, lenders will look closely at debt coverage.
Myles Vacancy, management and upkeep start from this area's defaults. We add tax and insurance, twelve thousand a year, and the two fifty a month we pay for water and trash. Laundry brings in a hundred.
Myles Get my report. Sarah?
Sarah Cash flow today. Fifty five hundred in rent, and after costs, vacancy and the loan, two sixty two a month.
Sarah Where today's numbers lead. Hover any year: by year ten, about four sixty five thousand.
Myles And the worst case?
Sarah Downturn replays this county's hardest downturn on record, two thousand eight to twenty eleven. The value dips, the cash keeps coming, and by year ten the value's back above today's.
Myles Now, simulate a cash flow change. Let's say you can trim costs five percent. That's a hundred twenty nine more a month.
Sarah And a three percent raise, where local rules allow?
Myles Another hundred fifteen. Five oh six a month in all.
Sarah Debt coverage goes from one eleven to one twenty one, and at the market cap rate, that's about forty one thousand in property value.
Myles And if you'd like to explore paying the mortgage off sooner, for example, half of the cash flow toward the loan pays it off over three years early, with thirty nine thousand less interest.
Sarah And every assumption behind the analysis.
Myles That's it. Your rental, and what could change your cash flow. Anything to add, Sarah?
Sarah Rent rules vary by state and city, so check yours before any raise. Then run one on your own rental.
Myles See ya.
Announcer PriceDNA is for education and information only. It is not an appraisal or investment advice, and projections are not guarantees.