Value lens
Cap-rate calculator
The cap rate only tells the truth if the NOI does.
Change the number
What the math says Metric - Waiting on inputs. Metric - Waiting on inputs. Metric - Waiting on inputs. Metric - Waiting on inputs.
The first number is only the beginning.
Going-in value - Stressed exit value - NOI dependency -
The chart will name the assumption carrying the most weight once the model runs.
Scenario check
| Case | Result | What moved |
|---|
Assumption ledger
Assumption coach Move an input to see what assumption is carrying the story.
Is the NOI trailing, adjusted, or stabilized?
Projected NOI sold as current NOI
A cap rate is not a return promise. It is a pricing lens before leverage.
What this number is really saying
Cap rate links income to value. If income moves or the market demands a higher cap rate, value moves. Sometimes violently.
The assumption to attack
Raise the exit cap rate and trim NOI. That is where the brochure stops smiling.
What the math is ignoring
Debt terms, renovation cost, timing, taxes, and whether the reported NOI survives a real buyer diligence process.
Headline, stress, proof.
- Start with the headline result.It names the current modeled answer, not the decision.
- Compare the stress cases.The scenario strip shows which assumption makes the answer fragile.
- Use the ledger as a diligence list.Every input should map back to a document, invoice, statement, term sheet, or named assumption.
Documents before confidence.
T-12, rent roll, broker opinion, recent sale comps, tax and insurance resets, and the exit-cap sensitivity table.
Stress before trust
- Projected NOI sold as current NOI
- Ignoring expense resets
- Comparing cap rates across different risk profiles
Make the model answer.
- Is the NOI trailing, adjusted, or stabilized?
- What cap rate is used at exit?
- What buyer would pay that price?
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