Examples are the fastest way to catch hidden assumptions. The goal is not the exact number—it’s understanding how property ROI moves.
Start with a conservative base case, then test a downside shock and a managed response.
Three scenario templates that show how property ROI behaves when assumptions change.
Examples are the fastest way to catch hidden assumptions. The goal is not the exact number—it’s understanding how property ROI moves.
Start with a conservative base case, then test a downside shock and a managed response.
Use realistic values for rent, expenses, and vacancy. Record outputs like cap rate, NOI, and cash-on-cash return.
If the base case fails your decision threshold, you do not have a safe plan yet.
Worsen one variable meaningfully while keeping others constant.
If one shock breaks the plan, build a buffer or mitigation strategy.
Assume the downside happens—and you respond using levers you can execute.
The managed case is your plan B. Write it down before the shock happens in real life.