Methodology
How DealYields analyzes a deal
The same engine the report and PDF use. High-level formulas — not the source code — so you can trust the numbers without treating them as a guarantee.
Type an address
Google Places completes the address. RentCast fills property details, a value estimate, a rent estimate, taxes, and comparable sales from public records and live market data. Every number stays editable — auto-fill is a starting point, not a locked appraisal.
The engine runs the deal
One calculation engine powers the live preview, the shareable report, and the PDF so the figures cannot drift. Change purchase price, rent, expenses, financing, or growth rates and every metric updates.
Share it, or send it as a lead
Save the analysis (free accounts: 3 deals) to get a report link. “Get funded” forwards the deal to lenders in the DealYields network. That is a lead, not a loan and not an offer to lend.
Rental math, at a high level
Percentages in the wizard are entered as percents (vacancy 5) and stored as fractions (0.05) in the engine. Dollars are annual unless a field is labeled monthly.
- Gross scheduled income is annual rent (or the unit mix, when you itemize duplex / multifamily) plus other monthly income annualized.
- Gross operating income (GOI) is scheduled income after vacancy.
- NOI is GOI minus operating expenses: property tax, insurance, repairs, HOA, other expenses, and management as a percent of GOI.
- Cap rate is year-1 NOI divided by purchase price.
- Cash flow (before tax) is NOI minus annual debt service on an amortizing loan (purchase price × LTV, at the rate and term you set).
- Cash-on-cash is year-1 cash flow divided by total cash in (down payment + closing costs + rehab).
- IRR and NPV use the cash-flow series: cash in at t0, each year’s cash flow, and net sale proceeds in the hold’s last year (appreciated ARV minus cost of sale and remaining loan balance). IRR is solved from that series; NPV discounts it at the rate you set.
- Income and expenses grow at the annual rates you enter. Optional after-tax figures use a simple taxable-income model (NOI − interest − straight-line depreciation over 27.5 years) when you supply a tax rate and depreciable basis.
Fix & flip and ground-up
Flips model purchase → renovate → sell on a monthly schedule: rehab (with contingency), carrying costs, purchase advance and rehab holdback, and interest either on the full note (“full Dutch”) or on the drawn balance. Profit, return on invested cash, peak equity, and IRR come off that schedule.
Ground-up models land through completion — draws, interest reserves, sources and uses — then either a sell exit or a stabilize-and-hold exit (yield on cost, refi DSCR).
None of this is an appraisal, a commitment, or advice. If a result looks wrong, change the input; the engine is deterministic given what you typed.