RentalCalcs Editorial · Research edition October 18, 2026
Pennsylvania: build a defensible buyer NOI
Property / address: ____________________ Review date: ____________
Examples below are hypothetical, not observed market rents, a quoted premium or a loan offer. Write your property values and evidence on the right. This sheet does not save inputs.
| Annual budget or acquisition line | Example | Your figure / source / date |
|---|---|---|
| Purchase price | $2,000,000 | ____________________ |
| Scheduled annual apartment rent | $216,000 | ____________________ |
| Other annual income | $4,000 | ____________________ |
| Vacancy / concessions / collection loss | $11,000 | ____________________ |
| Buyer taxes | $28,000 | ____________________ |
| Insurance | $12,000 | ____________________ |
| Owner-paid utilities | $14,000 | ____________________ |
| Recurring maintenance | $15,000 | ____________________ |
| Management | $14,000 | ____________________ |
| Administration | $6,000 | ____________________ |
| Annual NOI before reserves / debt | $120,000 | ____________________ |
| Loan principal | $1,200,000 | ____________________ |
| Annual debt service | $91,018 | ____________________ |
| Annual replacement reserve | $6,000 | ____________________ |
| Closing costs | $60,000 | ____________________ |
| Immediate capital work | $90,000 | ____________________ |
| Total invested cash | $950,000 | ____________________ |
Example: 12 units × $1,500 monthly × 12. Debt: 6.5% assumed, 30-year amortization. NOI $120,000 ÷ price $2,000,000 = 6.00% cap. Cash after debt and reserves $22,982 ÷ invested cash $950,000 = 2.42% cash-on-cash. DSCR 1.32× before / 1.25× after reserves. Verify the lender numerator.
Immediate work is capital outside NOI. Replacement reserve is deducted below NOI. Add any required initial lender reserve deposit to invested cash. Philadelphia abatement expiry or Pittsburgh capital work: replace the $28,000 tax allowance and $90,000 immediate-work budget with parcel evidence and binding bids.
Local evidence and property decisions
Buyer taxes and abatements
Philadelphia offers several different abatement and exemption programs. Verify the parcel’s approved program, remaining term and taxable land/improvements. A seller’s bill or owner exemption is not a buyer estimate. Outside Philadelphia obtain the municipal, county and school assessment treatment.
Rental operations
Philadelphia requires a Rental License. Check the license, tax clearance, open violations and lead documentation before assigning uninterrupted collections. This city source does not establish rules throughout Pennsylvania.
Insurance and capital
Obtain a property-specific replacement-cost and liability quote, flood determination and business-income terms. The example premium is a hypothetical budget, not a Pennsylvania market quote. Coordinate each capital item with lost-rent timing.
Comparable-sale audit
| Sale / closing date | Location, units, vintage | NOI period / expense convention | Price / cap / adjustments |
|---|---|---|---|
| ____________ ____________ | ____________ ____________ | ____________ ____________ | ____________ ____________ |
| ____________ ____________ | ____________ ____________ | ____________ ____________ | ____________ ____________ |
| ____________ ____________ | ____________ ____________ | ____________ ____________ | ____________ ____________ |
Do not average incompatible rates. Identify asks, financed valuations and closed sales separately. Shared provider data is not independent confirmation.
Downside, exit and approval boundary
Value = annual NOI ÷ (cap percent ÷ 100). Total NOI growth is cumulative. Simple property value excludes debt payoff, sale costs, taxes and interim cash flows. Calculate net proceeds separately.
| Scenario | NOI / exit cap | Gross value | Net proceeds after payoff / sale costs / tax |
|---|---|---|---|
| Compression | ________ | ________ | ________ |
| Stable caps | ________ | ________ | ________ |
| Expansion + lower NOI | ________ | ________ | ________ |
What evidence would invalidate my case? __________________________
Missing documents / responsible person / deadline: __________________
Sources and dated coverage limits: vouchermatch.com/rentalcalcs/cap-rates/pennsylvania#sources. Consult the report before treating a benchmark as current.