Start with your numbers, add the property profile and show DulyCheck what is documented versus assumed. It will then build the full deal workspace around the risks that actually apply.
Works = monthly cash flow strictly above $0 AND (cash-on-cash at or above your target, or not applicable because $0 cash is invested) AND (no debt OR DSCR at or above 1.20). Borderline = cash flow exactly $0, or cash flow above $0 while the target or DSCR is missed. Fails = monthly cash flow below $0.
46% of tracked lines rest on a document or an outside reference.
How DulyCheck judged this
Strong = at least 70% of tracked lines Documented or Supported and no more than 2 Assumed/Missing. Weak = fewer than 40% Documented/Supported or 6+ Assumed/Missing. Otherwise Mixed.
Resilience
fragile
Almost no room for error
Break-even gross rent is $1,774 against $1,795 underwritten.
Rent has roughly 1% of room before monthly cash flow reaches $0.
4 tracked line(s) have under 10% of room before cash flow reaches $0.
How DulyCheck judged this
Strong = rent can fall 15% or more before cash flow hits $0 and fewer than two other lines have under 10% room. Fragile = negative cash flow now, or rent cushion under 5%. Otherwise Thin.
Start here
The 3 things I would work on first
These combine weak evidence with real financial exposure. The point is not to collect paperwork for its own sake. Start with the items most capable of changing your decision.
01Supported
Monthly rent
Marked Supported; a plausible harmful error changes about $156/mo of cash flow, and it can move about 1% before monthly cash flow reaches $0.
Best next proof: Signed lease, rent roll, or three closed rental comps.
Why it matters: Rent is the main income driver and small errors flow directly through NOI, cash flow and debt coverage.
02Supported
Interest rate
Marked Supported; a plausible harmful error changes about $82/mo of cash flow, and it can move about 2% before monthly cash flow reaches $0.
Best next proof: Rate lock or written lender term sheet.
Why it matters: Rate changes debt service, cash flow and DSCR, but the cheapest quoted rate may come with points, penalties or other terms.
03Missing
Other monthly costs
Marked Missing; a plausible harmful error changes about $50/mo of cash flow, and cash-on-cash is already below the 8.0% target.
Best next proof: Utilities, lawn, snow, pest, licensing invoices.
Why it matters: Utilities, lawn, pest, trash, licensing and other owner-paid costs are easy to omit because they sit outside the mortgage.
The math
Does the deal work as currently underwritten?
DulyCheck recomputes the numbers from your inputs using standard amortization and the rules shown below. These are model outputs, not independently verified property facts.
Monthly cash flow
$18
$216 per year
Cash-on-cash
0.3%
Target 8.0%
DSCR
1.06
NOI / $13,894
Cap rate
6.28%
NOI $14,756 / price
Monthly P&I
$1,158
Loan $176,250
Cash invested
$77,550
Down $58,750 + rehab $12,000 + closing $6,800
Break-even rent
$1,774
Underwritten at $1,795
Operating expense ratio
28%
Of collected rent, excluding debt
Monthly income
Gross rent$1,795
Vacancy loss5.0%- $90
Effective rent$1,705
Monthly outflow
Property tax$265
Insurance$121
HOA$0
Management0.0%$0
Maintenance5.0%$90
Other$0
Operating expensesexcludes debt service and CapEx$476
Net operating income$1,230
CapEx reserve3.0%$54
Debt service (P&I)$1,158
Cash flow$18
Understand the numbers
What the math is actually telling you
A metric is useful only if you understand what sits underneath it. These explanations use the numbers in this deal and highlight practical ways to test or improve them.
Monthly cash flow
$18
$216 per year under the current assumptions
What it means
The money left each month after the operating costs, CapEx reserve and modeled debt service in this DulyCheck.
Why it matters
Positive cash flow gives the property room to absorb ordinary surprises. A thin number can disappear quickly if rent, vacancy, repairs, tax or insurance move against you.
Ways to improve or investigate
•Negotiate a lower purchase price or seller credit.
•Compare financing structures with a lower payment or less cash drag.
•Document achievable rent or other legitimate property income.
•Replace rough expense assumptions with actual quotes before cutting them.
Cash-on-cash return
0.3%
Your stated minimum is 8.0%
What it means
Annual pre-tax cash flow divided by the cash you put into the deal at acquisition under the assumptions supplied.
Why it matters
It shows how hard the cash you invested is working before appreciation, principal paydown and taxes. It can look artificially strong if rehab, closing costs or reserves are understated.
Ways to improve or investigate
•Reduce the cash required at closing without taking on unacceptable debt risk.
•Negotiate price, credits or repair concessions.
•Improve documented income or operating efficiency.
•Compare the result with your actual minimum return requirement, not a generic rule of thumb.
Debt Service Coverage Ratio
1.06
$14,756 NOI ÷ $13,894 annual debt service
What it means
Net operating income divided by annual principal-and-interest debt service. A 1.20x DSCR means the modeled NOI is $1.20 for every $1.00 of modeled debt service.
Why it matters
It measures how comfortably the property's operations support the debt. Lender requirements vary, so compare this with the actual loan terms rather than assuming one universal minimum.
Ways to improve or investigate
•Compare a lower loan amount, lower rate or longer amortization where actually available.
•Ask a conventional, DSCR and local portfolio lender for written terms and compare total cost, not just rate.
•Investigate seller financing or assumable financing only when the property and transaction are actually eligible.
•Check prepayment penalties, points, reserves, balloon dates and refinance risk before choosing a lower-payment structure.
Capitalization rate
6.28%
$14,756 annual NOI ÷ $235,000 purchase price
What it means
Annual NOI divided by purchase price, before financing. It measures the property's operating yield on price using the supplied income and expenses.
Why it matters
Cap rate helps compare operating economics independently of your loan, but it is only as reliable as the NOI. Missing expenses can make it look better than it is.
Ways to improve or investigate
•Confirm rent and all recurring operating costs before relying on the cap rate.
•Compare the property with genuinely similar assets in the same market and condition.
•Use price negotiation rather than optimistic expense cuts to improve a weak cap rate.
Break-even gross rent
$1,774
Compared with $1,795 underwritten gross rent
What it means
The approximate gross monthly rent at which modeled cash flow reaches $0 under the other assumptions supplied.
Why it matters
It shows how much rent cushion exists before the property stops covering its modeled costs. A break-even rent close to market rent means little room for vacancy or rent softness.
Ways to improve or investigate
•Lower fixed carrying costs or debt service.
•Negotiate the acquisition price.
•Verify market rent with leases, rent rolls or strong local rental evidence rather than assuming future increases.
Operating expense ratio
28%
Modeled operating expenses as a share of collected rent
What it means
Modeled operating expenses as a percentage of collected rent, excluding debt service and the separately modeled CapEx reserve.
Why it matters
It helps reveal whether the expense load looks unusually light or heavy, but there is no universal correct percentage. Property type, age, utilities and management structure matter.
Ways to improve or investigate
•Replace percentage rules of thumb with trailing bills and service agreements where possible.
•Separate true operating expenses from CapEx and financing costs.
•Check whether owner-paid utilities, leasing fees or repair markups are missing.
Property diligence
What the spreadsheet cannot prove
These checks sit outside the simple rent-and-mortgage math. DulyCheck adapts the list to the property profile you supplied and keeps unknown items visible rather than pretending they are safe.
8 high-priority diligence items for this property profile
A high priority does not mean DulyCheck found a defect. It means this is a common place for an investment thesis to fail and the current financial model cannot settle it by itself.
Income & tenants
3 checks · 3 high priority
OpenClose
Lease-up, turnover and bad-debt drag
Check early
Vacancy percentages often miss leasing commissions, make-ready work, concessions, delinquency and the occasional expensive tenant turn.
How to settle it
Ask a local manager for typical days-to-lease and lease-up fees.
Model one realistic turnover event, including cleaning, paint, repairs and lost rent.
Separate physical vacancy from delinquency and concessions when the market warrants it.
Sewer lines, foundations, drainage and concealed water damage are infrequent but can create five-figure surprises that simple maintenance reserves do not capture well.
How to settle it
Use the inspection to identify age/condition flags.
Order a sewer scope where age, trees or local conditions make it relevant.
Escalate cracks, movement or chronic moisture to the appropriate specialist before closing.
Points, lender fees, reserves, amortization, interest-only periods, balloons and prepayment penalties can change the true cost or trap an exit strategy.
How to settle it
Compare written Loan Estimates or term sheets, not verbal rates.
Document points, lender fees, reserves, amortization and payment structure.
Check prepayment penalties, balloon dates and refinance assumptions before relying on a lower payment.
A strategy can depend on refinancing, selling or raising rent later. If those events arrive under worse rates, value or liquidity, the original return can disappear.
How to settle it
Write down the actual planned exit and the date it must happen, if any.
Stress-test refinance at a higher rate and lower valuation.
Include selling costs and any prepayment penalty in exit scenarios.
Local Help results may come from third-party directories or providers and can be incomplete, outdated or inaccurate. DulyCheck does not guarantee or certify any provider. Confirm credentials, licensing, insurance, references, pricing and terms before engaging anyone. Any paid referral relationship will be disclosed when applicable. DulyCheck suggestions and provider information are estimates and starting points. Independently verify licensing, insurance, qualifications, pricing, availability and all material property facts before relying on them.
Downside check
What could break this deal?
These are the strongest challenges DulyCheck can make from the information you supplied. They are not predictions. They are specific ways the current thesis could fail if an important assumption is wrong.
01
Monthly rent
What if monthly rent is wrong? It is marked supported and cash flow reaches $0 when it falls past $1,774.
Past that point the deal stops producing cash. A plausible harmful error changes about $156/mo of cash flow.
How to settle it: Signed lease, rent roll, or three closed rental comps.
02
Interest rate
What if interest rate is wrong? It is marked supported and cash flow reaches $0 when it rises past 7.03%.
Past that point the deal stops producing cash. A plausible harmful error changes about $82/mo of cash flow.
How to settle it: Rate lock or written lender term sheet.
03
Other monthly costs
What if other monthly costs is wrong? It is marked missing and cash flow reaches $0 when it rises past $18.
Past that point the deal stops producing cash. A plausible harmful error changes about $50/mo of cash flow.
How to settle it: Utilities, lawn, snow, pest, licensing invoices.
04
Self-management
Management is modeled at $0, so the return partly reflects your unpaid labour rather than the asset.
At a market 8% of collected rent, monthly cash flow would fall by about $136.
How to settle it: Re-run the deal at 8-10% management and see whether it still clears your target.
05
Lender view
DSCR is 1.06. Many lenders underwrite investment property at 1.25 minimum using their own expense assumptions, not yours.
If the lender re-underwrites with higher vacancy or management, financing terms can change late in the process.
How to settle it: Ask your lender which expense assumptions they apply and re-check DSCR against those.
Missing costs
What might be missing from the underwriting?
A zero can be correct. DulyCheck flags common categories that currently sit at zero so you can confirm whether that was intentional rather than discovering the cost after closing.
Confirm
Management is currently modeled at $0, which assumes you self-manage indefinitely. Confirm whether the deal still clears your target if you hand it off later.
Confirm
Other monthly costs are currently modeled at $0. Confirm landlord-paid utilities, lawn/snow, pest, and any rental licensing are genuinely zero.
Evidence
Which numbers are facts, estimates or assumptions?
Evidence status is separate from the number itself. A value can be mathematically valid and still be poorly supported. In a saved deal workspace, you can improve these statuses and save a free revision.
Monthly rent
Supported
about $156/mo of cash flow
What would strengthen it: Signed lease, rent roll, or three closed rental comps.
Your evidence note: Three leases within 0.4 mi at $1,725-$1,850. No lease on the subject unit.
Interest rate
Supported
about $82/mo of cash flow
What would strengthen it: Rate lock or written lender term sheet.
Your evidence note: Quoted, not locked.
Other monthly costs
Missing
about $50/mo of cash flow
What would strengthen it: Utilities, lawn, snow, pest, licensing invoices.
Your evidence note: No supporting note recorded yet.
Purchase price
Documented
about $116/mo of cash flow
What would strengthen it: Executed contract or written offer terms.
Your evidence note: Executed purchase contract, 14 Mar.
Property tax
Documented
about $27/mo of cash flow
What would strengthen it: County tax bill, plus reassessment rules after sale.
Your evidence note: County bill: $3,180. Reassessment after sale not yet modeled.
Management fee
Assumed
about $17/mo of cash flow
What would strengthen it: Management agreement, including lease-up and renewal fees.
Your evidence note: Plan is to self-manage year one.
Insurance
Estimated
about $12/mo of cash flow
What would strengthen it: Written quote for this address, not a per-door average.
Your evidence note: Carried forward from another property in the same county.
Maintenance
Assumed
about $9/mo of cash flow
What would strengthen it: Inspection report plus historical repair spend.
Your evidence note: Rule of thumb.
Vacancy
Estimated
about $9/mo of cash flow
What would strengthen it: Submarket vacancy data or your own turnover history.
Your evidence note: Submarket average, not property history.
HOA dues
Documented
about $50/mo of cash flow
What would strengthen it: HOA statement or resale certificate.
Your evidence note: No HOA on this parcel.
CapEx reserve
Assumed
about $5/mo of cash flow
What would strengthen it: Component ages (roof, HVAC, water heater) and replacement costs.
Your evidence note: Roof age unknown; HVAC reported as 2011.
Upfront rehab
Estimated
adds more upfront cash invested without changing monthly cash flow
What would strengthen it: Contractor scope and bid, with contingency.
Your evidence note: Walkthrough estimate, no contractor bid.
Closing costs
Supported
adds more upfront cash invested without changing monthly cash flow
What would strengthen it: Lender fee worksheet or title estimate.
Your evidence note: Lender fee worksheet, draft.
Stress test
How wrong can the important numbers be?
Each input is moved in the direction that hurts while the other assumptions stay fixed. The thresholds show when cash-on-cash falls below your target and when modeled monthly cash flow reaches $0.
Swipe sideways →
How far each assumption can move before the target return and cash flow break.
Assumption
Now
Misses 8.0% target at
Cash flow $0 at
Room / effect
Monthly rent↓ hurts
$1,795
already below
$1,774
1% to $0 · -$87/mo per $100 of rent
Purchase price↑ hurts
$235,000
already below
$238,649
2% to $0 · -$49/mo per $10,000 of price
Insurance (annual)↑ hurts
$1,450
already below
$1,666
15% to $0 · -$42/mo per $500/yr
Property tax (annual)↑ hurts
$3,180
already below
$3,396
7% to $0 · -$42/mo per $500/yr
Vacancy↑ hurts
5.0%
already below
6.0%
20% to $0 · -$18/mo per 1 pt of vacancy
Maintenance↑ hurts
5.0%
already below
6.0%
20% to $0 · -$18/mo per 1 pt of rent
CapEx reserve↑ hurts
3.0%
already below
4.0%
33% to $0 · -$18/mo per 1 pt of rent
Management fee↑ hurts
0.0%
already below
1.1%
-$17/mo per 1 pt of collected rent
Upfront rehab↑ hurts
$12,000
already below
no direct effect
-0.02 pts CoC per $5,000 of rehab; monthly cash flow unchanged
HOA dues (monthly)↑ hurts
$0
already below
$18
-$50/mo per $50/mo of HOA
Other monthly costs↑ hurts
$0
already below
$18
-$50/mo per $50/mo of other costs
Closing costs↑ hurts
$6,800
already below
no direct effect
Adds upfront cash invested per $2,500 of closing costs; monthly cash flow unchanged
Interest rate↑ hurts
6.88%
already below
7.03%
2% to $0 · -$59/mo per 0.5 pt of rate
Improve the deal
What price or terms would make the current model stronger?
These are deterministic breakpoints against your own 8.0% minimum. They hold every other assumption fixed, so treat them as negotiation and scenario starting points rather than predictions.
Maximum purchase price at 8.0% cash-on-cash
$159,318
Holding every other assumption fixed, $159,318 is the highest price that still returns 8.0%. That is $75,682 below your modeled price.
Minimum gross rent at 8.0% cash-on-cash
$2,369
You need $2,369/mo to hit 8.0%. You underwrote $1,795.
Break-even gross rent
$1,774
Below $1,774/mo the property stops covering its own costs including debt service.
Improve the financing
Compare written terms, not rate headlines
DulyCheck can show how financing changes this property's economics, but it does not guess today's lender rate or tell you which loan to choose. Enter terms you actually received, then compare the result with the financing already in your deal.
Modeled loan
$176,250
Rate / term
6.88% · 30 yrs
Monthly P&I
$1,158
DSCR
1.06
Compare a lender quote
Use this for a fully amortizing alternative. Enter the actual down payment, rate, amortization, points and other lender fees from a quote or term sheet. Points and lender fees are modeled as additional upfront cash on top of the closing-cost figure already in your deal.
Metric
Current deal
Alternative
Loan amount
$176,250
$176,250
Monthly P&I
$1,158
$1,158
Initial cash invested
$77,550
$77,550
Monthly cash flow
$18
$18
Cash-on-cash
0.28%
0.28%
DSCR
1.06
1.06
What this quote adds
$0
Modeled points + other lender fees
A lower payment can still require much more cash. A larger down payment can improve cash flow while reducing cash-on-cash. Compare the full written term sheet, not just the rate.
This calculator assumes a standard fully amortizing loan at the rate and term entered. It does not model ARM resets, interest-only periods, balloons, prepayment penalties, lender reserve requirements, recourse, or qualification rules. Model those from the actual written schedule and terms before relying on the result.
30-year fixed investment loan
Useful as a baseline when you qualify personally and want predictable principal-and-interest payments.
Why it might help
A long fixed amortization can reduce payment volatility and makes it easier to compare the property economics without a future rate reset.
What can smoke the deal
Compare rate, points, lender fees, required reserves, recourse, down payment and total cash to close. A lower rate can still be more expensive if it requires large points.
Worth comparing when property cash flow is strong but personal-income underwriting is inconvenient or limiting.
Why it might help
Qualification may focus more heavily on the property's rental economics than traditional personal-income underwriting.
What can smoke the deal
Check the lender's actual DSCR calculation, rate, points, reserve requirements, prepayment penalty, appraisal/rent schedule and whether the loan is fixed, ARM or interest-only.
Useful when a local bank or credit union may underwrite the property or borrower more flexibly than a standardized loan program.
Why it might help
A portfolio lender may be able to consider local collateral, banking relationship or deal structure that does not fit a conventional box.
What can smoke the deal
Terms can include balloons, shorter fixed periods, recourse, covenants or renewal/refinance risk. Compare the full term sheet, not only the initial payment.
Potentially relevant when the seller owns enough equity and is willing and legally able to carry part of the purchase price.
Why it might help
Negotiable rate, amortization, down payment or payment timing can sometimes improve cash flow or reduce near-term cash required.
What can smoke the deal
Use qualified legal/title professionals. Confirm lien position, due-on-sale issues, balloon date, default remedies, servicing and the seller's ability to offer the structure.
Sometimes proposed when the investor is optimizing near-term payment or expects a refinance, sale or stabilization event before full amortization matters.
Why it might help
A non-standard structure can lower the initial payment or match debt service to a planned business stage.
What can smoke the deal
Model the exact written payment schedule, reset index and margin, rate caps, interest-only expiry, balloon date, refinance assumptions, reserves and prepayment terms. The simple comparison calculator below does not model these structures as if they were fixed amortizing loans.
Rates, payments, eligibility, lender DSCR calculations, fees and terms must be confirmed in writing with the lender. Local Help results may come from third-party directories or providers and can be incomplete, outdated or inaccurate. DulyCheck does not guarantee or certify any provider. Confirm credentials, licensing, insurance, references, pricing and terms before engaging anyone. Any paid referral relationship will be disclosed when applicable.
Your action plan
What I would do next before relying on this deal
The order matters. Resolve the items with the best chance of changing the economics or the decision first, then work outward into the broader property diligence.
1
Document or challenge monthly rent
Marked Supported; a plausible harmful error changes about $156/mo of cash flow, and it can move about 1% before monthly cash flow reaches $0.
Get: Signed lease, rent roll, or three closed rental comps.
2
Document or challenge interest rate
Marked Supported; a plausible harmful error changes about $82/mo of cash flow, and it can move about 2% before monthly cash flow reaches $0.
Get: Rate lock or written lender term sheet.
3
Document or challenge other monthly costs
Marked Missing; a plausible harmful error changes about $50/mo of cash flow, and cash-on-cash is already below the 8.0% target.
Review physical, legal, tenant, HOA and hazard diligence
The current financial model cannot prove roof/HVAC/sewer/foundation condition, lease durability, code/licensing status, HOA reserves and assessments, flood/fire exposure, title issues or other property-specific risks. Add those facts as the adaptive diligence engine expands.
Important
DulyCheck is an analytical and diligence-support tool. Financial results, property costs, financing scenarios, market information, provider information and other outputs are estimates based on information supplied by you or third parties and may be inaccurate, incomplete or outdated. DulyCheck does not independently verify all information and does not provide investment, legal, tax, lending, insurance, construction or other professional advice. Independently verify material information and make your own investment decisions.
