Real Estate Investment Analysis
Comprehensive real estate investment analysis — from deal screening through financial modeling to investor-ready output. Covers all property types, standard and advanced metrics, code generation, and tax-aware structuring.
Analysis Workflow
Follow this 6-step process for any deal or market analysis:
- Define scope — Identify property type, investment strategy, and target output format
- Gather data — Collect property financials, market data, and comps (use API reference if automating)
- Build pro forma — Construct income statement: Gross Rent → Vacancy → EGI → OpEx → NOI → Debt Service → Cash Flow
- Calculate returns — Apply appropriate metrics (see Quick Reference below)
- Stress test — Run sensitivity analysis, scenarios, or Monte Carlo simulation
- Report — Generate investor-ready output with recommendations
Quick Reference — Core Metrics
| Metric |
Formula |
Typical Range |
| NOI |
Effective Gross Income - Operating Expenses |
Varies by asset |
| Cap Rate |
NOI / Property Value |
4-10% (market-dependent) |
| Cash-on-Cash |
Annual Pre-Tax Cash Flow / Total Cash Invested |
8-12% target |
| DSCR |
NOI / Annual Debt Service |
1.2x+ (lender minimum) |
| IRR |
Discount rate zeroing NPV of all cash flows |
15-20% target |
| Equity Multiple |
Total Distributions / Total Capital Invested |
2.0x+ over hold |
| GRM |
Property Price / Annual Gross Rent |
8-15 (lower = better) |
| Break-even Occ. |
(OpEx + Debt Service) / Potential Gross Income |
<85% preferred |
For complete formulas, Python code, and Excel equivalents → load references/financial-metrics.md
Property Type Router
Select the analysis framework based on property type:
| Property Type |
Key Metrics |
Rules of Thumb |
Reference |
| SFR / Small Multi (1-4) |
CoC, Cap Rate, DSCR |
1% rule, 50% rule, 70% rule |
references/property-types.md §Residential |
| BRRRR |
ARV, Rehab ROI, Refi LTV |
70% rule: Max buy = 70% ARV - repairs |
references/property-types.md §Residential |
| House Hack |
Effective housing cost, FHA terms |
3.5% down FHA, self-sufficiency test |
references/property-types.md §Residential |
| Large Multifamily (5+) |
Per-unit metrics, NOI, Cap Rate |
OpEx ratio 35-45% |
references/property-types.md §Commercial |
| Commercial (Office/Retail) |
Per-SF metrics, lease analysis |
NNN vs Gross lease impact |
references/property-types.md §Commercial |
| Short-Term Rental |
RevPAR, ADR, Occupancy |
Revenue = ADR x Occ x 365 - fees |
references/property-types.md §STR |
| Land / Development |
Absorption rate, dev pro forma |
Total cost vs projected value |
references/property-types.md §Land |
Analysis Type Router
Select the analysis methodology based on what the user needs:
| Need |
Method |
Reference File |
| Run the numbers on a deal |
Pro forma + core metrics |
references/financial-metrics.md |
| Stress test assumptions |
Sensitivity analysis (bear/base/bull) |
references/advanced-analysis.md §Sensitivity |
| Model uncertainty/risk |
Monte Carlo simulation |
references/advanced-analysis.md §MonteCarlo |
| Syndication distributions |
Waterfall modeling (GP/LP splits) |
references/advanced-analysis.md §Waterfall |
| Compare/score markets |
Market scoring framework |
references/market-analysis.md §Scoring |
| Pull market data via API |
API integration patterns |
references/market-analysis.md §APIs |
| Find and adjust comps |
Comparable analysis |
references/market-analysis.md §Comps |
| Optimize tax impact |
Depreciation, cost seg, 1031 |
references/tax-strategy.md |
| Choose entity structure |
LLC, LP, S-Corp comparison |
references/tax-strategy.md §Entity |
Output Format Selection
Adapt output to the user's request:
Spreadsheet-ready — Generate formatted tables with formulas. Use pandas DataFrames exported to CSV/Excel. Include Excel formula equivalents for each calculation.
Decision framework — Provide structured narrative analysis with go/no-go recommendation. Include risk factors, key assumptions, and sensitivity ranges.
Code generation — Produce Python scripts using numpy-financial and pandas. Include complete, runnable pro forma models, Monte Carlo simulators, or waterfall calculators.
Investor report — Combine all three: executive summary, financial tables, risk analysis, and appendix with methodology.
Operating Expense Benchmarks by Property Type
| Property Type |
OpEx Ratio (% of EGI) |
Management Fee |
| Single-Family Rental |
35-50% |
8-10% |
| Small Multifamily (2-4) |
35-45% |
8-10% |
| Large Multifamily (5+) |
35-45% |
5-8% |
| Office |
35-55% |
3-5% |
| Retail (NNN) |
15-25% |
3-5% |
| Retail (Gross) |
60-80% |
3-5% |
| Industrial |
15-25% |
3-5% |
| Short-Term Rental |
50-65% |
20-25% |
Key Tax Thresholds (2025-2026)
| Strategy |
Key Detail |
| Depreciation |
Residential: 27.5yr, Commercial: 39yr (straight-line) |
| Bonus Depreciation |
100% for property placed in service Jan 20, 2025 – Dec 31, 2030 |
| Cost Segregation |
Reclassify 15-40% of building into 5/7/15-yr assets |
| Section 179 |
$2.5M max deduction (2025), phase-out at $4M |
| 1031 Exchange |
45-day ID period, 180-day closing, like-kind real property only |
| Opportunity Zones |
Made permanent (2025), 10-year gain exclusion on QOF investment |
For complete tax analysis with IRS code references → load references/tax-strategy.md
API Quick Reference
| Provider |
Best For |
Pricing |
Auth |
| Mashvisor |
STR + LTR rental data |
$30-$120/mo |
x-api-key header |
| AirDNA |
STR performance data |
$12-$599/mo |
Bearer token |
| ATTOM |
Deep property data (155M+ properties) |
$850-$2K/mo |
apikey param |
| Rentcast |
Rental estimates |
Free-$449/mo (50 free/mo) |
X-Api-Key header |
| Census Bureau |
Demographics, housing |
Free (API key required) |
key param |
| Redfin Data Center |
Market trends |
Free (CSV download) |
None |
For endpoint URLs, Python examples, and integration patterns → load references/market-analysis.md
Waterfall Distribution Quick Reference
Standard syndication tiers:
| Tier |
IRR Hurdle |
LP Share |
GP Share |
| 1 (Return of Capital + Pref) |
0-8% |
100% |
0% |
| 2 (First Promote) |
8-12% |
90% |
10% |
| 3 (Second Promote) |
12-18% |
80% |
20% |
| 4 (Final Split) |
18%+ |
60% |
40% |
Market data: 8% pref in 40% of deals, 10% pref in 30% of deals. 85% of waterfalls use IRR hurdles.
For complete waterfall mechanics, catch-up provisions, and Python calculator → load references/advanced-analysis.md
Reference File Index
Load the appropriate reference file based on the analysis need:
| File |
Contents |
When to Load |
references/financial-metrics.md |
12 metrics with formulas, Python functions, Excel formulas, complete RealEstateProForma class, amortization schedules |
Building a pro forma, calculating returns, generating Python/Excel models |
references/advanced-analysis.md |
Sensitivity tables, Monte Carlo simulation (Python), waterfall calculator, syndication LP/GP mechanics |
Stress testing deals, modeling risk, syndication analysis |
references/property-types.md |
BRRRR framework, house hack analysis, commercial underwriting, STR revenue modeling, land development feasibility |
Analyzing a specific property type with tailored frameworks |
references/market-analysis.md |
Market scoring with 15+ indicators, 6 API integrations with Python code, comp adjustment methodology, submarket signals |
Comparing markets, pulling data via APIs, running comps |
references/tax-strategy.md |
Depreciation schedules, cost segregation savings, 1031 exchange rules, bonus depreciation (2025-2030), opportunity zones, entity structure comparison |
Tax-optimizing a deal, choosing entity structure, planning exchanges |
Audience Adaptation
- Beginner investors: Explain metric meanings, recommend starting with the 1% rule and cash-on-cash return, walk through pro forma line by line
- Experienced investors: Skip basics, lead with IRR and equity multiple, provide code/spreadsheet output, focus on sensitivity analysis and tax optimization
- Default to expert-level analysis unless context suggests otherwise
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1---2name: aznatkoiny-zai-skills-real-estate-investment3description: Real Estate Investment Analysis4---56# Real Estate Investment Analysis78Comprehensive real estate investment analysis — from deal screening through financial modeling to investor-ready output. Covers all property types, standard and advanced metrics, code generation, and tax-aware structuring.910## Analysis Workflow1112Follow this 6-step process for any deal or market analysis:13141. **Define scope** — Identify property type, investment strategy, and target output format152. **Gather data** — Collect property financials, market data, and comps (use API reference if automating)163. **Build pro forma** — Construct income statement: Gross Rent → Vacancy → EGI → OpEx → NOI → Debt Service → Cash Flow174. **Calculate returns** — Apply appropriate metrics (see Quick Reference below)185. **Stress test** — Run sensitivity analysis, scenarios, or Monte Carlo simulation196. **Report** — Generate investor-ready output with recommendations2021## Quick Reference — Core Metrics2223| Metric | Formula | Typical Range |24|--------|---------|---------------|25| **NOI** | Effective Gross Income - Operating Expenses | Varies by asset |26| **Cap Rate** | NOI / Property Value | 4-10% (market-dependent) |27| **Cash-on-Cash** | Annual Pre-Tax Cash Flow / Total Cash Invested | 8-12% target |28| **DSCR** | NOI / Annual Debt Service | 1.2x+ (lender minimum) |29| **IRR** | Discount rate zeroing NPV of all cash flows | 15-20% target |30| **Equity Multiple** | Total Distributions / Total Capital Invested | 2.0x+ over hold |31| **GRM** | Property Price / Annual Gross Rent | 8-15 (lower = better) |32| **Break-even Occ.** | (OpEx + Debt Service) / Potential Gross Income | <85% preferred |3334For complete formulas, Python code, and Excel equivalents → load `references/financial-metrics.md`3536## Property Type Router3738Select the analysis framework based on property type:3940| Property Type | Key Metrics | Rules of Thumb | Reference |41|--------------|-------------|----------------|-----------|42| **SFR / Small Multi (1-4)** | CoC, Cap Rate, DSCR | 1% rule, 50% rule, 70% rule | `references/property-types.md` §Residential |43| **BRRRR** | ARV, Rehab ROI, Refi LTV | 70% rule: Max buy = 70% ARV - repairs | `references/property-types.md` §Residential |44| **House Hack** | Effective housing cost, FHA terms | 3.5% down FHA, self-sufficiency test | `references/property-types.md` §Residential |45| **Large Multifamily (5+)** | Per-unit metrics, NOI, Cap Rate | OpEx ratio 35-45% | `references/property-types.md` §Commercial |46| **Commercial (Office/Retail)** | Per-SF metrics, lease analysis | NNN vs Gross lease impact | `references/property-types.md` §Commercial |47| **Short-Term Rental** | RevPAR, ADR, Occupancy | Revenue = ADR x Occ x 365 - fees | `references/property-types.md` §STR |48| **Land / Development** | Absorption rate, dev pro forma | Total cost vs projected value | `references/property-types.md` §Land |4950## Analysis Type Router5152Select the analysis methodology based on what the user needs:5354| Need | Method | Reference File |55|------|--------|----------------|56| Run the numbers on a deal | Pro forma + core metrics | `references/financial-metrics.md` |57| Stress test assumptions | Sensitivity analysis (bear/base/bull) | `references/advanced-analysis.md` §Sensitivity |58| Model uncertainty/risk | Monte Carlo simulation | `references/advanced-analysis.md` §MonteCarlo |59| Syndication distributions | Waterfall modeling (GP/LP splits) | `references/advanced-analysis.md` §Waterfall |60| Compare/score markets | Market scoring framework | `references/market-analysis.md` §Scoring |61| Pull market data via API | API integration patterns | `references/market-analysis.md` §APIs |62| Find and adjust comps | Comparable analysis | `references/market-analysis.md` §Comps |63| Optimize tax impact | Depreciation, cost seg, 1031 | `references/tax-strategy.md` |64| Choose entity structure | LLC, LP, S-Corp comparison | `references/tax-strategy.md` §Entity |6566## Output Format Selection6768Adapt output to the user's request:6970**Spreadsheet-ready** — Generate formatted tables with formulas. Use pandas DataFrames exported to CSV/Excel. Include Excel formula equivalents for each calculation.7172**Decision framework** — Provide structured narrative analysis with go/no-go recommendation. Include risk factors, key assumptions, and sensitivity ranges.7374**Code generation** — Produce Python scripts using numpy-financial and pandas. Include complete, runnable pro forma models, Monte Carlo simulators, or waterfall calculators.7576**Investor report** — Combine all three: executive summary, financial tables, risk analysis, and appendix with methodology.7778## Operating Expense Benchmarks by Property Type7980| Property Type | OpEx Ratio (% of EGI) | Management Fee |81|--------------|----------------------|----------------|82| Single-Family Rental | 35-50% | 8-10% |83| Small Multifamily (2-4) | 35-45% | 8-10% |84| Large Multifamily (5+) | 35-45% | 5-8% |85| Office | 35-55% | 3-5% |86| Retail (NNN) | 15-25% | 3-5% |87| Retail (Gross) | 60-80% | 3-5% |88| Industrial | 15-25% | 3-5% |89| Short-Term Rental | 50-65% | 20-25% |9091## Key Tax Thresholds (2025-2026)9293| Strategy | Key Detail |94|----------|------------|95| **Depreciation** | Residential: 27.5yr, Commercial: 39yr (straight-line) |96| **Bonus Depreciation** | 100% for property placed in service Jan 20, 2025 – Dec 31, 2030 |97| **Cost Segregation** | Reclassify 15-40% of building into 5/7/15-yr assets |98| **Section 179** | $2.5M max deduction (2025), phase-out at $4M |99| **1031 Exchange** | 45-day ID period, 180-day closing, like-kind real property only |100| **Opportunity Zones** | Made permanent (2025), 10-year gain exclusion on QOF investment |101102For complete tax analysis with IRS code references → load `references/tax-strategy.md`103104## API Quick Reference105106| Provider | Best For | Pricing | Auth |107|----------|----------|---------|------|108| **Mashvisor** | STR + LTR rental data | $30-$120/mo | x-api-key header |109| **AirDNA** | STR performance data | $12-$599/mo | Bearer token |110| **ATTOM** | Deep property data (155M+ properties) | $850-$2K/mo | apikey param |111| **Rentcast** | Rental estimates | Free-$449/mo (50 free/mo) | X-Api-Key header |112| **Census Bureau** | Demographics, housing | Free (API key required) | key param |113| **Redfin Data Center** | Market trends | Free (CSV download) | None |114115For endpoint URLs, Python examples, and integration patterns → load `references/market-analysis.md`116117## Waterfall Distribution Quick Reference118119Standard syndication tiers:120121| Tier | IRR Hurdle | LP Share | GP Share |122|------|-----------|----------|----------|123| 1 (Return of Capital + Pref) | 0-8% | 100% | 0% |124| 2 (First Promote) | 8-12% | 90% | 10% |125| 3 (Second Promote) | 12-18% | 80% | 20% |126| 4 (Final Split) | 18%+ | 60% | 40% |127128Market data: 8% pref in 40% of deals, 10% pref in 30% of deals. 85% of waterfalls use IRR hurdles.129130For complete waterfall mechanics, catch-up provisions, and Python calculator → load `references/advanced-analysis.md`131132## Reference File Index133134Load the appropriate reference file based on the analysis need:135136| File | Contents | When to Load |137|------|----------|-------------|138| `references/financial-metrics.md` | 12 metrics with formulas, Python functions, Excel formulas, complete RealEstateProForma class, amortization schedules | Building a pro forma, calculating returns, generating Python/Excel models |139| `references/advanced-analysis.md` | Sensitivity tables, Monte Carlo simulation (Python), waterfall calculator, syndication LP/GP mechanics | Stress testing deals, modeling risk, syndication analysis |140| `references/property-types.md` | BRRRR framework, house hack analysis, commercial underwriting, STR revenue modeling, land development feasibility | Analyzing a specific property type with tailored frameworks |141| `references/market-analysis.md` | Market scoring with 15+ indicators, 6 API integrations with Python code, comp adjustment methodology, submarket signals | Comparing markets, pulling data via APIs, running comps |142| `references/tax-strategy.md` | Depreciation schedules, cost segregation savings, 1031 exchange rules, bonus depreciation (2025-2030), opportunity zones, entity structure comparison | Tax-optimizing a deal, choosing entity structure, planning exchanges |143144## Audience Adaptation145146- **Beginner investors**: Explain metric meanings, recommend starting with the 1% rule and cash-on-cash return, walk through pro forma line by line147- **Experienced investors**: Skip basics, lead with IRR and equity multiple, provide code/spreadsheet output, focus on sensitivity analysis and tax optimization148- Default to **expert-level analysis** unless context suggests otherwise149150---151> Converted and distributed by [TomeVault](https://tomevault.io/claim/aznatkoiny) — claim your Tome and manage your conversions.152<!-- tomevault:4.0:skill_md:2026-04-15 -->
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