RentalCalcs Editorial · Research edition October 18, 2026
Rhode Island: 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 | $2,300,000 | ____________________ |
| Scheduled annual apartment rent | $216,000 | ____________________ |
| Other annual income | $4,000 | ____________________ |
| Vacancy / concessions / collection loss | $12,000 | ____________________ |
| Buyer taxes | $28,000 | ____________________ |
| Insurance | $14,000 | ____________________ |
| Owner-paid utilities | $15,000 | ____________________ |
| Recurring maintenance | $16,000 | ____________________ |
| Management | $14,000 | ____________________ |
| Administration | $6,000 | ____________________ |
| Annual NOI before reserves / debt | $115,000 | ____________________ |
| Loan principal | $1,380,000 | ____________________ |
| Annual debt service | $104,670 | ____________________ |
| Annual replacement reserve | $6,000 | ____________________ |
| Closing costs | $69,000 | ____________________ |
| Immediate capital work | $85,000 | ____________________ |
| Total invested cash | $1,074,000 | ____________________ |
Example: 10 units × $1,800 monthly × 12. Debt: 6.5% assumed, 30-year amortization. NOI $115,000 ÷ price $2,300,000 = 5.00% cap. Cash after debt and reserves $4,330 ÷ invested cash $1,074,000 = 0.40% cash-on-cash. DSCR 1.10× before / 1.04× 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. Replace the $28,000 tax allowance with the buyer’s actual classification. Time lead work and turnover against the $85,000 immediate capital plan and the first year of collections.
Local evidence and property decisions
Registry and lead compliance
RI Department of Health requires landlord rental registration and valid lead documentation for affected pre-1978 housing. Verify the property’s records and applicable exemptions. The registry FAQ explains consequences for nonpayment eviction filings; do not assume an unregistered property can execute the seller’s collection plan.
Buyer tax classification
Providence’s assessor provides classification, owner-occupancy and tax information. Verify the actual municipality, unit category, assessment and buyer eligibility. Do not keep the seller’s owner-occupied treatment in a non-owner-occupied acquisition.
Property risk and coverage
Check the effective parcel flood map and obtain a commercial quote covering the intended rental use, deductible and business-income period. Neither a state average premium nor this example’s allowance establishes coverage.
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/rhode-island#sources. Consult the report before treating a benchmark as current.