Real Estate Deal Analyzer

How the DoorProfit Deal Analyzer Works

Enter any U.S. property address and the Deal Analyzer pulls listing price, estimated rent, property taxes, insurance, square footage, and year built from public sources and MLS-adjacent feeds. It then computes the core underwriting metrics investors use to screen rental properties and flips: net operating income (NOI), cap rate, cash-on-cash return, debt service coverage ratio (DSCR), and projected 12-month appreciation. Every property also shows its DoorProfit crime score (A+ through F) so you can underwrite location risk alongside financial returns.

The formulas we use

Every number on the Deal Analyzer output is computed from transparent real-estate formulas. We don’t hide inputs inside opaque models.

• Net Operating Income (NOI) = Gross Rental Income − Vacancy − Operating Expenses. Operating expenses include taxes, insurance, HOA, property management, repairs allowance, and utilities. Debt service is not included in NOI.
• Cap Rate = NOI ÷ Property Value × 100. A 7% cap rate means the property generates 7% of its purchase price in NOI per year.
• Cash-on-Cash Return (CoC) = Annual Pre-Tax Cash Flow ÷ Total Cash Invested × 100. Pre-tax cash flow = NOI − annual debt service. Total cash invested = down payment + loan fees + renovation costs.
• Return on Investment (ROI) = (Annual Cash Flow + Principal Paydown + Appreciation) ÷ Total Cash Invested × 100. Bakes in equity growth, not just cash flow.
• Debt Service Coverage Ratio (DSCR) = NOI ÷ Annual Debt Service. Commercial lenders typically require DSCR > 1.25 on investment loans.
• Gross Rent Multiplier (GRM) = Property Value ÷ Annual Gross Rent. Useful for quick comparisons; lower is generally better.

The 1% rule, the 2% rule, and their limits

The 1% rule says monthly rent should equal or exceed 1% of the total property cost (purchase price + rehab). A $200,000 property should rent for at least $2,000 per month. The 2% rule is the same test at 2%: a $100,000 property should rent for $2,000/month. These rules are screening heuristics, not underwriting endpoints — they tell you whether a property is worth a deeper look. In high-appreciation coastal markets, 1%-rule deals are rare; in cash-flow Midwest markets, 2%-rule deals are common but often correlate with lower appreciation and higher tenant turnover. The DoorProfit Deal Analyzer flags properties that pass or fail the 1% rule automatically and shows the ratio.

The 70% rule for flips

Flippers use the 70% rule to cap downside: Maximum Offer = (After-Repair Value × 0.70) − Rehab Cost. The 0.30 cushion covers closing costs on both ends, holding costs (insurance, taxes, utilities during rehab), realtor commissions on resale, and target profit. Example: if ARV is $300,000 and rehab is $45,000, the maximum offer is ($300,000 × 0.70) − $45,000 = $165,000. The Deal Analyzer can apply the 70% rule when you flag the property as a flip rather than a long-term hold.

BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

BRRRR is a rental-property strategy that recycles capital through refinance. You buy a distressed property below market, rehab it, rent it to a tenant, refinance out at 75% of the new appraised value, and use the refi proceeds to buy the next property. The Deal Analyzer supports BRRRR underwriting by modeling both the acquisition cap rate and the post-refinance cash-on-cash return, using the refi-adjusted debt service and the trapped equity.

Why crime data matters for underwriting

Crime score isn’t just a safety signal for renters — it’s a material input to long-term rental economics. Neighborhoods graded D or F on the DoorProfit scale typically show:

• Higher insurance premiums (10-30% above market averages, depending on property type and coverage).
• Higher tenant turnover, which compresses effective annual rent after make-ready and vacancy costs.
• Thinner appreciation trends, because demand skews investor-renter rather than owner-occupier.
• Tighter lender appetite, which can raise interest rates or require larger down payments.

Conversely, A- and B-grade neighborhoods typically support lower cap rates (higher valuations) but richer appreciation and lower vacancy. The Deal Analyzer surfaces the crime score next to every metric so investors can consciously trade cash flow against location risk.

Worked example

Single-family rental at 619 E 7th Street, Alton, IL 62002.

• Purchase price: $95,000
• Renovations: $5,000
• Estimated monthly rent: $1,100
• Annual property taxes: $1,800
• Annual insurance: $960
• Vacancy rate: 8%
• Repairs allowance: 5% of gross income
• Property management: 10% of gross income
• Financing: 25% down, 7.25% interest, 30-year term

The Deal Analyzer computes annual NOI of roughly $7,660, cap rate of ~8.1%, cash flow after debt service of ~$2,310, cash-on-cash return of ~8.7% on the ~$26,500 invested, and DSCR of 1.43 — above the typical 1.25 lender floor. It then flags the property as passing the 1% rule ($1,100 monthly rent vs. $1,000 threshold) and shows the neighborhood crime grade alongside so you can weigh the financial case against location risk.

Who the Deal Analyzer is for

Individual investors screening 20-50 wholesale leads a week, small portfolio landlords underwriting acquisitions before calling a lender, real-estate agents preparing investor-client pro formas, and out-of-state buyers who want crime data included in every screen. It is not a replacement for a formal commercial appraisal or an institutional underwriting model; the Deal Analyzer is tuned for fast, consistent, single-property decisions.

Frequently Asked Questions