RentalCalcs · Free research worksheet · Reviewed October 18, 2026
A high reported cap can coexist with a shrinking legal income stream. In New York, establish lawful collectible rents, buyer expenses and financing capacity before deciding whether a discount compensates for risk.
· Read the evidence and use the interactive tools
Property / legal jurisdiction: Date:
Unit count / lease type / source documents:
| Annual line | Report illustration | Your property / evidence |
|---|---|---|
| Price | $2,500,000 | ___________________ |
| Scheduled rent | $384,000 | ___________________ |
| Vacancy, concessions and collection loss (subtract once) | $38,400 | ___________________ |
| Effective collected income | $345,600 | ___________________ |
| Buyer taxes | $65,000 | ___________________ |
| Binding insurance premium | $24,000 | ___________________ |
| Management | $18,000 | ___________________ |
| Recurring repairs | $30,000 | ___________________ |
| Owner utilities | $40,000 | ___________________ |
| Administration / recurring compliance | $18,600 | ___________________ |
| Recurring expenses total | $195,600 | ___________________ |
| NOI before debt and reserve | $150,000 | ___________________ |
All example amounts are hypothetical, not local quotes. Buyer NOI = collected income − recurring operating costs. Capital work and replacement reserves are separate. Cap = NOI ÷ price × 100.
Sale address / date / source:
Actual geography, units, class and lease/regulation basis:
Price / reported NOI / trailing or forward basis:
Debt assumption, concessions, immediate work, missing inputs:
Ariel’s borough reports incorporate projected closings and combine different rent-regulation mixes. The 2025 comparator is a full-year cohort, not H1 2025: the changes below are period comparisons, not year-over-year changes. Cap-reporting sample size, NOI convention and weighting are undisclosed. Northern Manhattan is excluded because its HTML narrative says 8.70% while its table says 8.30%; neither is silently chosen. Manhattan is Ariel’s report geography and must not be assumed to include that separately reported district.
| Loan, rate, amortization | $1,375,000 / 6.5% / 30 years | ____________ |
|---|---|---|
| Annual debt service | $104,291 | ____________ |
| Annual replacement reserve below NOI | $12,000 | ____________ |
| Down payment + closing + immediate work | $1,125,000 + $90,000 + $160,000 = $1,375,000 | ____________ |
| Cash after debt and reserve | $33,709 | ____________ |
| DSCR before / after reserve | 1.44× / 1.32× | ____________ |
| Cash-on-cash before income tax | 2.45% | ____________ |
Confirm lender NOI/reserve convention. Cash-on-cash uses all invested cash above; capital reserves and repairs are not interchangeable. Property value does not guarantee refinance proceeds.
Entry cap: _____% · Exit cap: _____% · Total cumulative NOI change: _____%
Value = annual NOI ÷ (cap ÷ 100). Buyer-cost correction: _____ per year. Revised NOI: _____ . Value at original cap: _____ . Wider-cap value: _____ .
NOI needed to preserve value = starting NOI × exit cap ÷ entry cap. Simple value excludes debt payoff, sale costs, taxes and interim cash flow.
Missing document / evidence that invalidates the thesis:
Maximum offer supported by buyer NOI, debt and liquidity:
Primary checks: NYC Department of Finance — Class 2 guide · NYC Rent Guidelines Board — Order 58 · NY DFS — Information for small businesses. No photographed building or regional benchmark is a subject-property appraisal.