Commercial Revenue Generating properties like office buildings, apartment buildings, retail centers, etc (banks call it "CRE" lending) are typically evaluated from their net operating income, not gross.

Cash Investment Report: 4-Plex Investment in Huntsville, ALInvestment Overview Property Type: 4-Plex Purchase Price: $450,000 Gross Monthly Rent: $900 per unit ($3,600 total) Annual Gross Income: $43,200Operating Expenses Property Taxes: $4,500 annually Insurance Costs: $2,000 annually Property Management: 10% of gross rent = $4,320 annually Miscellaneous Expenses: $25 per unit per month = $1,200 annually CapEx Reserve: 10% of gross rent = $4,320 annually Total Annual Operating Expenses (Excluding Rehab):$4,500 + $2,000 + $4,320 + $1,200 + $4,320 = $16,340Net Operating Income (NOI) NOI Calculation:$43,200 (Annual Gross Income) - $16,340 (Operating Expenses) = $26,860Cap Rate Cap Rate Formula:✓ 
Cap Rate = ($26,860 / $450,000) × 100 = 5.97%One-Time Investment Costs Rehab Costs: $10,000 (one-time upfront investment) Total Cash Required (Excluding Financing): $460,000Investment EvaluationStrengths: Competitive Cap Rate: 5.97% aligns with national averages and reflects a stable investment in a growing market.

The buyers I resonated with, who I believed in as operators–those were the people I was willing to be flexible with.

One workaround could be keeping a separate spreadsheet to track your adjusted tax basis accurately and only using Stessa for operational insights.You could also reach out to a cpa and see if they have a specific recommendation for software to use.  

However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

For us STR hosts, I know we are very conscientious about guest experience and I want to be proactive about doing things to ensure my business operates successfully.Thanks!

The plan is to keep operating the property as a PadSplit post-acquisition.

Its being operated at STR from last 30 months with great cash flow.

If you can come in and operate effectively I think you'll find success rather quickly due to that.BTW - for a property management platform I would highly recommend Buildium.

We’ll need to dig deeper into the property’s condition, operating expenses, and the specifics of the market before making a final decision.