RentalCalcs · Texas multifamily research · Reviewed October 18, 2026

Texas buyer NOI and cap-rate worksheet

Complete with property evidence, not a metro average. Fields stay in this page; nothing is submitted or saved automatically. Use the browser’s print dialog to save your completed copy as PDF. Calculations below are manual.

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Property / municipality / county / building vintage

Purchase price ($)Evidence checked on

1. Match the comp before choosing a cap

Record closed-sale date, location, vintage, unit mix, cap sample coverage and actual versus projected NOI. Separate broker estimates, asking caps and historical benchmarks. Austin metro is not Austin County; Irving’s 2025 benchmark is not a current sale quote.

Comparable evidence, income basis and adjustmentsCurrent competing deliveries, concessions and lease expirations

2. Reconcile collectible income

Scheduled annual rent ($)Other recurring income ($/year)Vacancy + concessions + collection loss ($/year)Effective income = scheduled + other − loss ($/year)

Trailing period / forward period / rent-roll reconciliation

3. Replace seller expenses with buyer evidence

Use the parcel’s appraisal and full local taxing-unit stack. Record binding insurance quotes, flood/wind coverage where required, deductibles and exclusions. Check city-specific registration and inspection records; Dallas rules do not describe every Texas city.

Buyer property tax ($/year)All required insurance ($/year)Management ($/year)Recurring repairs / turnover ($/year)Owner-paid utilities ($/year)Payroll / administration / recurring fees ($/year)Total recurring expenses ($/year)NOI = effective income − recurring expenses ($/year)

Tax notices, policy quotes, compliance findings and unresolved costs

4. Test cost leakage and value

Additional annual cost ABOVE the budget ($)Stressed NOI = NOI − additional cost ($)Required cap (%)Indicated price = stressed NOI ÷ (cap ÷ 100) ($)

At a fixed 5.5% cap, each additional $1 of recurring cost reduces income-capitalized value by $18.18. Do not count the same repair or reserve twice.

5. Finance the actual income

Loan amount ($)Annual debt service ($)Annual reserve outside NOI ($)Closing + immediate capital work ($)Cash invested = price − loan + closing + work ($)Cash flow = NOI − debt service − reserve ($/year)

Cash-on-cash = cash flow ÷ cash invested × 100. DSCR = lender-underwritten NOI ÷ debt service. Debt yield = lender NOI ÷ loan × 100. Confirm reserve conventions and other lender sizing constraints.

6. Challenge the exit

Exit annual NOI ($)Exit cap (%)Gross exit value = exit NOI ÷ (cap ÷ 100) ($)Sale costs + remaining debt ($)

Compression / stable / expansion case: what observation would invalidate it?Missing documents and next action before committing funds

Reconciled hypothetical example

20 units × $1,250 × 12 = $300,000 rent. Less $24,000 revenue loss and $166,000 expenses = $110,000 NOI. At $2 million: 5.50% cap. A $1.2 million loan at 6.5%, monthly payments, 30-year amortization costs approximately $91,018/year. After $10,000 reserves: $8,982 cash. Invested cash is $800,000 down + $60,000 closing + $40,000 work = $900,000; cash-on-cash is approximately 1.00%, before tax.

An additional $15,000 annual cost lowers NOI to $95,000, value at 5.5% to $1,727,273, DSCR before reserves to 1.04× and cash after debt/reserves to −$6,018. Separately, 10% cumulative NOI growth to $121,000 at a 6.5% exit yields $1,861,538, down 6.9% before sale costs and debt payoff.

Original RentalCalcs worksheet. Hypothetical assumptions are not tax, insurance, lender or market quotes. Sources and research limits.