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Updated over 4 years ago,
Rental stress test algorithm help
Hi all,
I'm currently working on the planning phase of creating a rental stress test algorithm that will essentially output the inflection points where the deal turns from good to bad. The idea is to eventually have it running with a click of a button given certain criteria as I'm running the numbers on a property. I'm primarily focused on SFH but any MF advice/opinions is also appreciated.
The possible cases I have so far are:
-Vacancy (how many months can the property hold before the numbers turn negative)
-capex (how much monthly income can I put aside while still getting at least $100 in cashflow )
-declining rents
Thanks in advance.