gabrielmoreira Property Investment Analysis Skill
A rental looks good until you run the real numbers — vacancy, maintenance, management, and debt service decide whether it actually cash-flows. This skill structures the analysis with the metrics investors actually use (NOI, cap rate, cash-on-cash, cash flow), shows the formulas and a worked example, and gives a verdict against the investor's target — so a deal is judged on math, not optimism.
Note: this is an analysis aid, not financial, investment, tax, or legal advice, and it does not guarantee returns. It computes from the figures and assumptions you provide; verify numbers and decisions with a qualified professional. Use real figures where given; never fabricate income/expenses — mark placeholders.
Working from a brief
Given a price and rent, run the analysis anyway — structure it with the standard metrics and a worked example, using realistic placeholder assumptions for any missing operating cost (replace with your numbers) (vacancy %, maintenance, management, taxes, insurance). Show the formulas. Never present invented figures as real.
Required Inputs
Ask for these only if they aren't already provided (else use labelled placeholders):
- Purchase — price, closing costs, expected rehab, and the financing (down payment, rate, term) if leveraged.
- Income — monthly rent (and any other income), and a realistic vacancy assumption.
- Operating expenses — taxes, insurance, maintenance, management, HOA, utilities, capex reserve.
- Investor criteria — target cash-on-cash / cap rate / monthly cash flow, and the strategy (buy-and-hold, etc.).
Output Format
Investment Analysis: [property]
- How the numbers work — the formulas up front:
NOI = annual income − operating expenses (excl. debt);Cap rate = NOI / price;Cash flow = NOI − debt service;Cash-on-cash = annual cash flow / cash invested. - Income — gross rent, vacancy allowance, effective income.
- Operating expenses — itemised (taxes, insurance, maintenance, management, reserves…), with placeholders flagged.
- Returns — a clean summary with the worked numbers:
| Metric | Value |
|---|---|
| NOI (annual) | … |
| Cap rate | …% |
| Monthly cash flow | … |
| Cash invested | … |
| Cash-on-cash return | …% |
- Verdict — does it meet the investor's criteria? The strengths, the risks, and the assumptions it hinges on (rent, vacancy, capex).
- Sensitivity — how the verdict shifts if rent is lower or vacancy/expenses higher (a quick downside check).
Mark all placeholder figures (replace with your numbers).
Quality Checks
- Uses real metrics (NOI, cap rate, cash flow, cash-on-cash) with the formulas shown
- Operating expenses include the often-forgotten ones (vacancy, maintenance, management, capex reserves)
- Debt service is separated from operating expenses (NOI excludes it; cash flow includes it)
- Returns are computed from the inputs, not invented; placeholders are flagged
- The verdict is judged against the investor's stated criteria
- A downside/sensitivity check is included
Anti-Patterns
- Do not omit vacancy, maintenance, management, and capex — that's how a "good" deal becomes a money pit
- Do not fold debt service into operating expenses — it breaks NOI and cap rate
- Do not invent operating costs as fact — use the user's figures or labelled placeholders
- Do not present one optimistic scenario — show the downside sensitivity
- Do not give investment advice or guarantee returns — analyse and point to a professional
Based On
Real-estate investment analysis practice — NOI/cap-rate/cash-on-cash modelling, full operating-expense accounting, and downside sensitivity.