Make the numbers
make sense.
Transparent formulas. Editable assumptions. Useful answers.
Explore a scenario before you make a commitment.
Build your operating model.
Replace the hypothetical inputs with your own verified figures.
The assumptions are part of the answer.
Effective income = scheduled rent × (1 − vacancy). NOI = annual effective income − annual operating costs; excludes debt, tax on income, depreciation, and the separately modeled replacement reserve. Cash flow = effective income − operating costs − debt − reserve. Management is calculated on effective income.
Understand the framework