Performance & Returns
Formula: Cap Rate = Net Operating Income ÷ Property Value
The unleveraged annual return on a property, expressed as a percentage. Cap rate strips out financing so you can compare two properties on the same footing, regardless of how they were bought.
Why it matters: A higher cap rate means more income per dollar of property value, but it usually signals higher risk or a slower-appreciating market. Use it to compare similar property types in similar markets.
Calculated by Nimbus from your transaction data and current valuation.
Formula: Cash-on-Cash = Annual Pre-Tax Cash Flow ÷ Total Cash Invested
The percentage return on the actual cash you put into a deal in a given year. Unlike cap rate, this number does include financing, so a property with a low cap rate can still produce a strong cash-on-cash return when leveraged well.
Why it matters: It answers the practical question: how hard is the cash I parked in this property working for me right now?
Calculated by Nimbus from your transaction data, mortgage payments, and cash invested.
Formula: NOI = Gross Rental Income − Operating Expenses (excluding debt service)
Income from a property after operating expenses like property tax, insurance, maintenance, and management, but before mortgage payments. NOI is the building block for cap rate and DSCR.
Why it matters: Lenders care about NOI because it shows what the property produces independent of how it is financed. Investors care because it is the cleanest read on operating performance.
Computed by Nimbus from financial transactions classified as rental income and operating expenses.
Formula: ROI = (Total Return − Total Cost) ÷ Total Cost
Total return as a percentage of total cost over the holding period. In real estate, "total return" includes cash flow, principal paydown, and appreciation, so ROI is broader than cash-on-cash and broader than cap rate.
Why it matters: Use ROI for the full-picture evaluation of a deal once you know (or estimate) all four return drivers, not just current cash flow.
Calculated by Nimbus from purchase data, valuations, transaction history, and loan principal paydown.
Formula: Total Return = Cash Flow + Principal Paydown + Appreciation + Tax Benefits
The sum of every dollar a property earned you over a period. Cash flow is what hits your bank account; principal paydown is the loan balance you reduced; appreciation is the value gain; tax benefits include depreciation and write-offs.
Why it matters: Most investors fixate on cash flow, but appreciation and paydown often dwarf it over a long hold. Total return tells you whether the deal worked, full stop.
Computed by Nimbus across the holding period using transactions, loan amortization, and valuation history.
Formula: IRR is the discount rate that makes the net present value of all cash flows equal to zero.
The annualized return rate that accounts for the time value of money. Unlike ROI, IRR weights early cash flows more heavily than later ones, and it adjusts for irregular timing of contributions and distributions.
Why it matters: When comparing deals with different hold periods or cash flow profiles, IRR is the apples-to-apples number. A 15% IRR over five years beats a 20% total ROI over ten years.
Computed by Nimbus from the timestamped cash flow series for an asset.
Formula: GRM = Property Value ÷ Annual Gross Rent
A back-of-envelope ratio comparing price to gross rent. Lower GRM means a property generates more rent per dollar of price. GRM ignores expenses, so it is a fast triage tool, not a full analysis.
Why it matters: Useful for screening many listings quickly. If a market typically trades at GRM 8 and one is listed at GRM 12, that is a starting point for due diligence, not a verdict.
Calculated by Nimbus from listing or current value plus annual rent.
Formula: Equity = Property Value − Loan Balance
How much of the property you actually own, in dollars. As you make payments and the property appreciates, equity grows. Equity is what you can pull via HELOC, cash-out refinance, or eventual sale.
Why it matters: Equity is the long-term wealth signal. Cash flow pays the bills; equity builds the portfolio.
Calculated by Nimbus from current valuation minus current loan balance(s).
Formula: Gross Equity = Property Value − Loan Balance
Equity before subtracting selling costs. This is the optimistic read: what you would have if you could magically transfer ownership for zero friction.
Why it matters: Gross equity is the right number for refinance and HELOC eligibility, since lenders underwrite off the property value, not the after-sale proceeds.
Calculated by Nimbus from current valuation minus loan balance(s).
Formula: Net Equity = Property Value − Loan Balance − Selling Costs
Equity after subtracting realistic selling costs (typically 6-9% of sale price for agent commissions, transfer taxes, repairs, closing costs). This is what would actually hit your bank account if you sold today.
Why it matters: When projecting a sale or 1031 exchange, net equity is the honest number. Use gross equity for borrowing decisions; use net equity for sell decisions.
Calculated by Nimbus using gross equity minus a configurable selling-cost percentage.
Formula: Annual Appreciation = (Current Value ÷ Purchase Price)^(1 ÷ Years) − 1
The annualized growth rate of a property's value over the holding period. Compounded, not simple. A property that doubled in 10 years appreciated about 7.2% annually.
Why it matters: Appreciation is the silent driver of long-term returns and the reason real estate beats most asset classes when held through cycles. Compare against ZHVI year-over-year for the local market for context.
Calculated by Nimbus from purchase price, current value, and time held.
Cash Flow & P&L
Formula: Cash Flow = Rental Income − Operating Expenses − Debt Service
What hits your bank account each month after the property pays its own bills. Positive cash flow means the property is supporting itself; negative cash flow means you are subsidizing it from outside income.
Why it matters: Cash flow is the most visible and emotionally important metric, but it can mask great long-term returns (paydown plus appreciation) on a property that breaks even monthly.
Computed by Nimbus from monthly transaction history per asset.
All income generated by the property. Includes base rent, late fees, pet rent, parking, laundry, application fees, and ancillary services. Excludes refundable deposits.
Why it matters: Tracking rental income against market rent (via Zillow ZORI, Rentcast, and Census ACS) is how you spot under-rented properties before lease renewals.
Captured by Nimbus from transactions classified as income categories.
All costs to run the property, excluding mortgage payments. Common categories: property tax, insurance, maintenance, repairs, HOA dues, utilities (when paid by owner), property management fees, vacancy costs, and capital expenditure reserves.
Why it matters: OpEx as a percentage of gross rent is one of the cleanest reads on operational efficiency. The "50% rule" says expect OpEx around half of rent on long-term rentals, though it varies wildly by property type and market.
Classified by Nimbus from your transaction data.
Formula: Debt Service = Principal + Interest (per period)
Your mortgage payment, broken into the part that pays down loan balance (principal) and the part that goes to the lender as interest. Debt service is what separates NOI from cash flow.
Why it matters: Principal paydown counts toward your total return even though it does not show up in cash flow. Reviewing debt service helps you see how much wealth you are building "invisibly".
Pulled from loan amortization schedule for each financed property.
Big-ticket replacements that extend the property's useful life: roof, HVAC, water heater, flooring, kitchen remodel. Distinct from regular maintenance, which keeps existing systems running.
Why it matters: CapEx is lumpy and often left out of monthly cash flow estimates. Setting aside a CapEx reserve (commonly 5-10% of gross rent) prevents a surprise roof from wrecking your annual returns.
Classified by Nimbus from transaction data; also accessible via the Cost vs Value calculator.
Annual tax assessed by the county (sometimes city) based on assessed value, paid usually in 1-2 installments. Rates vary from under 0.5% (Hawaii) to over 2% (New Jersey, Illinois, Texas) of assessed value.
Why it matters: Property tax is the largest fixed operating expense in most markets and grows over time. Underestimating it on an out-of-state purchase is a top-three rookie investor mistake.
Tracked by Nimbus from transactions categorized as property_tax; also extracted from tax bills uploaded to Trove.
Formula: Economic Vacancy Rate = Lost Rent ÷ Potential Rent
Income lost when a unit sits unoccupied or rents below scheduled. Includes physical vacancy (no tenant) plus economic vacancy (rent concessions, late payments, evictions).
Why it matters: Most underwriting assumes 5-8% vacancy. Markets with lots of new supply or tenant turnover may run higher; well-screened long-term-rental portfolios may run lower.
Computed from lease data and rent collection history; market vacancy is sourced from Census ACS.
Financing & Loans
Formula: LTV = Loan Balance ÷ Property Value
How much of the property is financed versus owned outright. An 80% LTV means you have 20% equity. LTV drives PMI requirements, refinance eligibility, and HELOC headroom.
Why it matters: Most conventional loans require PMI above 80% LTV, and most HELOCs cap combined LTV at 80-85%. Watching LTV drop is how you spot the right moment to refinance, recast, or pull equity.
Calculated by Nimbus from current loan balance and most recent valuation.
Formula: DTI = Total Monthly Debt Payments ÷ Gross Monthly Income
How much of your monthly income goes to debt. Lenders typically cap conventional mortgages at 43% DTI, but some programs allow higher with compensating factors.
Why it matters: DTI determines how many properties you can finance before lenders cut you off. DSCR loans skip DTI entirely by qualifying the property instead.
Self-reported by the user; not computed by Nimbus.
Formula: DSCR = Net Operating Income ÷ Total Debt Service
Ratio of property income to mortgage payments. A DSCR of 1.0 means the property exactly covers its debt; below 1.0 means it does not; 1.25 is a common minimum lenders look for on a DSCR loan.
Why it matters: DSCR-loan underwriting often skips your personal income and qualifies the property on its own. A solid DSCR opens up lender options that traditional debt-to-income underwriting blocks.
Calculated by Nimbus from NOI and current loan payment data.
A monthly fee that conventional lenders charge when LTV is above 80%. PMI typically runs 0.3% to 1.5% of the loan amount per year. The Homeowners Protection Act lets borrowers cancel PMI once LTV drops to 80%, and lenders must drop it automatically at 78%.
Why it matters: PMI is one of the easiest costs to remove. Once your LTV crosses below 80% from appreciation or principal paydown, request cancellation in writing.
Tracked by Nimbus on loans flagged with PMI; Chene flags PMI removal opportunities automatically.
FHA loans charge MIP, the FHA equivalent of PMI. There are two parts: an upfront premium (1.75% of loan, financed) and an annual premium (0.15% to 0.55% based on LTV and term). For LTV above 90%, MIP runs the life of the loan; otherwise it drops at 11 years.
Why it matters: MIP is harder to escape than PMI. The only way to drop it on a long-term high-LTV FHA loan is to refinance into a conventional loan once you reach 20% equity.
Tracked by Nimbus on FHA loans; included in monthly payment calculations.
A one-time fee on VA loans that funds the program (no monthly mortgage insurance). For first-time use: 2.15% with no down payment, 1.50% at 5% down, 1.25% at 10%+. Subsequent use raises the no-down rate to 3.30%. Veterans with service-connected disabilities are exempt.
Why it matters: No monthly MI plus competitive rates make VA loans the strongest financing option for eligible veterans. The funding fee is financed into the loan, so it does not require cash at closing.
Calculated by Nimbus on VA-flagged loans based on down payment, service type, and usage count.
The schedule by which a loan is paid off through equal periodic payments. Early payments are mostly interest; late payments are mostly principal. A 30-year fixed mortgage front-loads interest heavily, which is why principal paydown accelerates after year 7-10.
Why it matters: Knowing where you are on the amortization curve tells you whether refinancing makes sense. Refinancing in year 25 to a fresh 30-year stretches the loan back into the interest-heavy phase.
Computed by Nimbus from each loan's rate, term, and balance.
Replacing an existing mortgage with a new one, usually to lower the rate, change the term, switch programs (FHA to conventional), or pull cash out. Cost-recouped break-even depends on closing costs and the new rate.
Why it matters: A refinance only saves money if you hold the loan past the break-even month. Track your current rate against Freddie PMMS and run the numbers when the spread is at least 0.75%.
Nimbus tracks current vs market rates; the refinance scenario projects break-even and lifetime savings.
A refinance that increases the loan balance and pays the difference to the borrower in cash. Lenders typically cap the new LTV at 75-80%, so available cash is roughly (Property Value × 0.75) − Existing Balance, minus closing costs.
Why it matters: Cash-out refis pull tax-deferred capital out of appreciated equity for the next deal. Compared to a HELOC, cash-out refis lock in a fixed rate but reset the amortization clock.
Modeled by Nimbus in the refinance scenario when the user picks "cash out".
A lump-sum principal reduction that lets the lender re-amortize your existing loan at a lower payment, without changing the rate or term. Most lenders charge $250-500 and require a minimum lump sum of $5K-$10K.
Why it matters: Recasting is far cheaper than refinancing when your existing rate is good. Use it when you have a lump sum (inheritance, sale proceeds) and want lower monthly payments without losing your current rate.
Modeled in Chene's recast scenario when the detector spots eligibility.
A revolving line of credit secured by your home equity. Most lenders cap combined LTV at 80-85%, so the available draw is roughly (Property Value × 0.80) − Existing Mortgage Balance. Interest is variable and typically prices off the prime rate.
Why it matters: HELOCs are how investors deploy paper equity into the next deal without selling. Cheaper than a personal loan, more flexible than a cash-out refinance.
Nimbus calculates available HELOC headroom from current valuations and loan balances.
Any mortgage not backed by a government program (VA, FHA, USDA). Conventional loans are usually conforming (within Fannie/Freddie limits, currently $766,550 for most counties) but jumbo loans are also conventional.
Why it matters: Conventional is the default. Most investors with strong credit, 20%+ down, and DTI under 43% qualify, and conventional carries no upfront fee like VA or FHA.
Tracked by Nimbus via the loan_program field on each loan.
A government-backed mortgage with looser credit and down-payment requirements (3.5% down at 580+ FICO). The catch: MIP for the life of the loan above 90% LTV.
Why it matters: FHA is how many first-time buyers get into a primary residence. Investors can only use FHA for owner-occupied purchases (including 2-4 unit "house hacks"), not pure rentals.
Tracked by Nimbus via the loan_program field; FHA loans surface MIP fields too.
A mortgage guaranteed by the Department of Veterans Affairs for eligible veterans, active-duty service members, and surviving spouses. Zero down, no monthly mortgage insurance, competitive rates, but a one-time funding fee.
Why it matters: VA loans are the strongest financing option for eligible borrowers. The 0% down requirement plus no MI saves both upfront cash and ongoing carry.
Tracked by Nimbus via the loan_program field; VA loans surface funding-fee and disability-exempt fields.
A mortgage backed by the US Department of Agriculture for purchases in eligible rural areas. Zero down, lower MI than FHA, but income limits apply.
Why it matters: USDA loans are an underused option for primary residences in qualifying areas (much of which is not "rural" in the casual sense). Check the USDA eligibility map before assuming a property does not qualify.
Tracked by Nimbus via the loan_program field.
A conventional mortgage that exceeds the conforming loan limit set annually by FHFA (currently $766,550 in most counties; up to $1,149,825 in high-cost areas). Stricter underwriting: higher down payment, more reserves, higher credit score.
Why it matters: Jumbo rates are sometimes lower than conforming rates because lenders see jumbo borrowers as a low-default segment. Worth shopping when buying expensive properties.
Tracked by Nimbus via the loan_program field.
A strategy to recycle capital across multiple properties: buy distressed, rehab to force appreciation, rent to stabilize, refinance to pull most of your invested capital out, then repeat. The goal is "infinite ROI" by leaving little or no cash in the deal.
Why it matters: BRRRR works when the After-Repair Value supports a refinance that returns 70-75% of total cost (purchase plus rehab). Markets with weak appreciation or thin comps make BRRRR risky.
Nimbus runs BRRRR scenarios that project ARV, refinance proceeds, and post-refi cash flow.
Market Data
Zillow's monthly index of typical home value across a geography (ZIP, county, metro, state). Smoothed and seasonally adjusted, so a single month is a noisy read but year-over-year change is reliable.
Why it matters: ZHVI is the closest thing to a public Case-Shiller at granular geography. Use ZHVI year-over-year to measure market appreciation independent of any single transaction.
Sourced from Zillow Research; loaded into Nimbus monthly via the Zillow ETL.
Zillow's 12-month forward forecast of home values, published monthly at the same geographies as ZHVI. Reflects Zillow's models, not consensus economist forecasts.
Why it matters: A useful anchor for "is this market accelerating or cooling?" but not a guarantee. Models miss inflection points. Treat as one signal among many.
Sourced from Zillow Research; loaded into Nimbus monthly.
The middle home value in a geography. Half of homes are worth more, half are worth less. Robust to outliers (one $50M sale doesn't move the median).
Why it matters: Median is the right summary statistic for home prices because the distribution has heavy tails. Average is misleading. ZHVI is essentially a smoothed median.
Surfaced via the public Explore Markets map and Nimbus geo-intelligence endpoints.
Formula: YoY % = (This Month ZHVI ÷ Same Month Last Year ZHVI) − 1
Year-over-year percent change in ZHVI. The cleanest single number for "is this market appreciating?" Negative means the market is in a correction.
Why it matters: A national real estate market that is up 4% might mask one metro that is up 12% and another that is down 3%. Always check at the local level.
Computed by Nimbus from ZHVI history per geography.
Formula: Price-to-Rent = Median Home Value ÷ Annual Median Rent
How many years of rent it would take to equal the home price. A ratio under 15 typically means buying beats renting; above 20 generally means renting beats buying. Markets like California and New York routinely run above 25.
Why it matters: Useful for screening markets for rental viability. A market with price-to-rent of 30 is going to have low cap rates and rely heavily on appreciation for returns.
Computed by Nimbus from median home value and median rent per geography.
Zillow's monthly index of typical asking rent across a geography. Methodology is similar to ZHVI but built from rent listings.
Why it matters: ZORI year-over-year is the cleanest single read on whether your asking rent is keeping pace with the local market. Pair it with Rentcast and Census ACS for a 3-signal blend.
Sourced from Zillow Research; loaded into Nimbus monthly.
An automated valuation model that estimates monthly rent for a specific street address using comparable rentals in the area. Granular enough to differ between two houses on the same block.
Why it matters: Per-address estimates beat ZIP-level averages when you need to set rent on a specific property. Use Rentcast as one of three signals (Zillow, Rentcast, Census) for the highest-confidence target rent.
Sourced from Rentcast API; cached per address in Nimbus.
Formula: YoY % = (This Month ZORI ÷ Same Month Last Year ZORI) − 1
Year-over-year percent change in ZORI. The headline number for whether rents are rising or falling in a market.
Why it matters: Rent growth above ~3% beats inflation in most years. Markets running rent growth above wage growth tend to mean-revert eventually; rent growth below wage growth is room to push.
Computed by Nimbus from ZORI history per geography.
Formula: Vacancy Rate = Vacant Units ÷ Total Units
The percentage of rental units that are vacant in a geography at a point in time. Tracked by the Census Bureau quarterly. Healthy long-term-rental markets run 5-7%; tight markets under 4%.
Why it matters: High market vacancy means landlords compete for tenants and rent growth slows. Low vacancy is a signal that you can push rents and reduce concessions.
Sourced from Census Housing Vacancy Survey; surfaced on the Explore Markets map.
Formula: Rent-to-Price = Annual Rent ÷ Property Value
The inverse of price-to-rent. A 1% monthly rent-to-price (i.e. 12% annual) is the classic "1% rule" cited in BiggerPockets-flavored investor circles. Increasingly hard to find in coastal markets.
Why it matters: Useful as a quick triage but ignores expenses, taxes, and financing. Pair with cap rate and DSCR for an honest read.
Calculated by Nimbus from rent and current valuation.
Economic Indicators (FRED)
The Freddie Mac Primary Mortgage Market Survey average rate on a 30-year fixed conventional mortgage with 20% down. Published every Thursday. Tracks the 10-year Treasury yield plus a spread (typically 150-200 basis points).
Why it matters: This is THE benchmark rate for refinance decisions and home affordability. When your existing rate is 100+ basis points above this number, run the refi math.
FRED series MORTGAGE30US, sourced from Freddie Mac PMMS.
The Freddie Mac PMMS average rate on a 15-year fixed conventional mortgage. Typically 50-75 basis points below the 30-year, reflecting lower lender risk and faster amortization.
Why it matters: Refinancing from 30-year to 15-year accelerates equity build dramatically but raises monthly payment 30-40%. Worth modeling when rates drop and cash flow is strong.
FRED series MORTGAGE15US.
The interest rate banks charge each other for overnight loans, set as a target range by the Federal Reserve's FOMC. The single most important monetary policy lever in the US.
Why it matters: Mortgage rates do not move 1:1 with the Fed funds rate, but they price off it indirectly. HELOCs and adjustable-rate mortgages move much more directly.
FRED series FEDFUNDS.
The interest rate large banks charge their most creditworthy commercial customers. Tracks Fed funds rate plus 3 percentage points (currently). HELOCs typically price as Prime + a margin.
Why it matters: When the Fed hikes, your HELOC payment goes up next billing cycle. Track Prime to anticipate HELOC carry costs.
FRED series MPRIME.
Yield on the 10-year US Treasury note, the benchmark "risk-free" rate that most long-term capital prices off. Mortgage rates track this closely.
Why it matters: When the 10-year moves 50 basis points, expect the 30-year mortgage rate to follow within a few weeks. The 10y-2y spread is also a recession indicator (inversion preceded every post-1980 recession).
FRED series GS10 (monthly) and DGS10 (daily).
The headline measure of US consumer inflation, published monthly by BLS. CPI year-over-year is the inflation rate cited in every news headline.
Why it matters: High CPI pressures the Fed to hold rates higher for longer, which keeps mortgage rates elevated. Real estate has historically hedged inflation well over multi-decade holds.
FRED series CPIAUCSL.
The percentage of the labor force that is jobless and actively looking. Published monthly by BLS. The "natural" rate (NAIRU) is around 4-5% for the US economy.
Why it matters: High unemployment increases tenant default risk and slows rent growth. A spike in local unemployment is one of the cleanest leading indicators of trouble in a rental market.
FRED series UNRATE.
The total number of paid US workers excluding farm workers, household employees, and nonprofit employees. Released the first Friday of every month and watched obsessively by markets.
Why it matters: Strong job creation is the single best signal of a healthy economy. Negative monthly prints have preceded most recessions.
FRED series PAYEMS.
Monthly survey-based index of consumer confidence. Captures households' read on current conditions and expectations. Indexed to 1966 = 100.
Why it matters: Confident consumers buy houses, trade up, and pay rent on time. Sentiment crashes (below 60) historically have preceded housing slowdowns.
FRED series UMCSENT.
Number of new privately-owned housing units that began construction in a month, annualized. Reported by the Census Bureau. A leading indicator of future housing supply.
Why it matters: High housing starts in a market means more competition for tenants and buyers in 12-18 months. Low starts foreshadow tightening supply and rising prices.
FRED series HOUST.
Number of housing units authorized by building permits in a month, annualized. Reported by the Census Bureau. A 30-60 day leading indicator of housing starts.
Why it matters: Permits often turn before starts do, so they catch the pivot first. Rising permits in your market means new inventory is on the way.
FRED series PERMIT.
A repeat-sales index of US home prices, published monthly with a two-month lag. Considered the gold standard for measuring residential price appreciation; methodology controls for property quality changes.
Why it matters: Case-Shiller is the index most economists cite. Track Case-Shiller year-over-year for a clean, methodologically robust read on national home price trends.
FRED series CSUSHPISA.
Tax & Strategy
Formula: Basis = Purchase Price + Closing Costs + Capital Improvements − Depreciation Taken
Your tax cost in a property. Used to calculate capital gain on sale. Capital improvements (new roof, addition) raise basis; depreciation taken lowers it.
Why it matters: Basis is what separates a paper gain from a taxable one. Keep meticulous records of capital improvements, since they reduce future tax bills.
Tracked by Nimbus from purchase data, closing documents, and CapEx transactions.
Formula: Annual Depreciation = (Property Value − Land Value) ÷ 27.5 (residential) or 39 (commercial)
A non-cash tax deduction that lets you write off the structural cost of a rental property over 27.5 years (residential) or 39 (commercial). Land is not depreciable.
Why it matters: Depreciation is the most powerful tax shelter in real estate. It can turn a positive-cash-flow property into a negative-on-paper one for tax purposes, while you still bank the cash.
Computed by Nimbus from cost basis and a configurable land-value allocation.
Formula: Capital Gain = Sale Proceeds − Cost Basis
Profit on sale of an investment property. Taxed at long-term rates (0%, 15%, or 20% federally) when held over a year. Depreciation recapture is taxed separately at up to 25%.
Why it matters: Selling without a 1031 exchange triggers capital gains tax plus depreciation recapture. On a long-held appreciated property, the combined tax can wipe out 25-30% of the gain.
Modeled by Nimbus in sell scenarios and 1031 exchange scenarios.
A tax-deferred exchange under IRC Section 1031. Sell an investment property, identify a "like-kind" replacement within 45 days, close on it within 180 days, and roll the basis forward without paying capital gains tax on the sale.
Why it matters: A 1031 lets you compound returns by deploying gross proceeds, not after-tax proceeds, into the next deal. The deadlines are strict; a qualified intermediary is mandatory.
Nimbus runs 1031 scenarios on assets you flag as potential exchanges.
Formula: Cost-Recouped % = Resale Value Add ÷ Project Cost
An annual industry report from JLC that tracks how much of a renovation's cost is recouped at resale, by US census division. Updated each year and stratified across 24 project types from minor kitchen remodels to bathroom additions.
Why it matters: When deciding which renovation to do before listing, the Cost vs Value data tells you which projects pay back. A garage door replacement recoups 95%; a swimming pool recoups around 30%.
Hand-loaded annually into Nimbus from the JLC Cost vs Value report; queried by the public calculator.
When property is inherited, the heir's cost basis is reset to the fair market value at the original owner's death. Decades of appreciation become tax-free overnight.
Why it matters: Step-up is the strongest tax incentive to hold real estate to death. Combined with 1031 exchanges, the wealthiest investors compound for life with zero capital gains paid.
Surfaced by Nimbus when modeling estate scenarios.
Scenarios
Models the full underwriting of a potential acquisition: cap rate, cash-on-cash, DSCR, monthly cash flow, 5-year and 10-year total return.
Why it matters: Pre-purchase analysis is the highest-leverage check you can run. Bad deals are won on price, not fixed in operations.
Run by Chene on demand or on request from the in-app scenario surface.
Models the financial outcome of selling an investment property: gross proceeds, selling costs, mortgage payoff, capital gain, depreciation recapture, and net after-tax proceeds.
Why it matters: Selling triggers significant tax friction. Modeling the after-tax number versus a 1031 alternative is how you decide whether to sell or exchange.
Run by Chene on demand or on request from the in-app scenario surface.
Models a rate-and-term or cash-out refinance: new monthly payment, lifetime interest savings, break-even month, and post-refi cash flow.
Why it matters: Refinances only make sense past break-even. The scenario surfaces the exact month at which the new loan starts paying you back.
Run by Chene on demand or on request from the in-app scenario surface.
Models the full BRRRR cycle: purchase price, rehab budget, ARV, refinance proceeds at 70-75% of ARV, post-refi cash flow, and final cash left in the deal.
Why it matters: BRRRR works only when the refinance returns most of your invested capital. The scenario surfaces the exact ARV needed for "infinite ROI".
Run by Chene on demand or on request from the in-app scenario surface.
Models drawing a HELOC: available headroom, projected monthly carry, breakeven analysis if proceeds are deployed into another deal.
Why it matters: HELOC carry is variable and rate-sensitive. The scenario surfaces what happens to monthly carry if Prime moves another 1%.
Run by Chene on demand or on request from the in-app scenario surface.
Models a tax-deferred exchange: gross proceeds available, replacement property sizing, basis carryforward, and projected returns on the replacement vs the existing property.
Why it matters: A 1031 only makes sense when the replacement projects better risk-adjusted returns than holding. The scenario does the side-by-side.
Run by Chene on demand or on request from the in-app scenario surface.
Stress-tests the portfolio against shocks: 25% rent drop, 90-day vacancy, doubled vacancy rate, mortgage rate shock. Surfaces which assets break first.
Why it matters: Knowing your weakest property tells you where to focus reserves and risk management before a downturn forces it.
Run by Chene on demand or on request from the in-app scenario surface.
Compares the IRR of holding a specific property for another 5/10 years against selling now and reinvesting the proceeds at a market-average return.
Why it matters: The "should I sell?" question gets clearer when you compare apples-to-apples IRR. Sometimes the boring hold beats the exciting exit.
Run by Chene on demand or on request from the in-app scenario surface.
Models converting an asset between use types: long-term rental to short-term rental, residential to mid-term, etc. Includes conversion costs, projected rent delta, and risk-adjusted return change.
Why it matters: Asset-type conversions can dramatically lift returns in the right markets. The scenario quantifies the conversion cost and the steady-state lift to decide whether the switch pencils out.
Run by Chene on demand or on request from the in-app scenario surface.
Models how to deploy a windfall: lump sum proceeds, inheritance, exit proceeds. Compares paying down debt, recasting, buying new property, or holding cash against current rate environment.
Why it matters: Windfall decisions get made under pressure. The scenario gives a structured comparison so the lump sum lands in the highest-impact place.
Run by Chene on demand or on request from the in-app scenario surface.
Sell scenario specific to a primary residence: factors in the $250K/$500K capital gains exclusion under Section 121, plus state-specific transfer taxes.
Why it matters: Primary-residence sales have wildly different tax treatment than investment sales. Mixing them up can cost six figures.
Run by Chene on demand or on request from the in-app scenario surface.
Refinance scenario tuned for a primary residence: emphasizes lifetime interest savings and emotional comfort metrics (lower payment) alongside pure financial break-even.
Why it matters: Homeowners and investors weigh refis differently. The same 100bp drop is "smart money management" for an investor and "peace of mind" for a homeowner. The scenario speaks to both.
Run by Chene on demand or on request from the in-app scenario surface.
Models a renovation project for a primary residence: cost, projected resale value-add (from JLC Cost vs Value), enjoyment score, and break-even if sold within different windows.
Why it matters: Most homeowners overweight resale ROI on renovations they will live with daily. The scenario factors in enjoyment alongside cost-recouped percent.
Run by Chene on demand or on request from the in-app scenario surface.
Models a relocation decision: sell vs rent-out the current home, buy vs rent at the new location. Captures cost-of-living delta, tax implications, and 5-year wealth projection.
Why it matters: Relocations force a complex set of decisions under time pressure. A single scenario that compares all four outcomes (sell+buy, sell+rent, keep+buy, keep+rent) clarifies the tradeoffs fast.
Run by Chene on demand or on request from the in-app scenario surface.
Real Estate Documents
The monthly statement from your loan servicer. Shows current balance, principal vs interest split for the last payment, year-to-date interest and tax payments, escrow balance, and the next due date.
Why it matters: Year-end mortgage interest from this statement (or the related Form 1098) is your Schedule A or Schedule E deduction. Catching escrow shortfalls here prevents surprise payment increases.
Issued monthly by your loan servicer; uploaded to Trove for OCR extraction.
The legal contract between landlord and tenant. Covers rent amount, lease term, security deposit, late fee structure, who pays which utilities, pet policy, and grounds for termination.
Why it matters: The lease is the source of truth for rent amount, renewal dates, and dispute resolution. Trove extracts the key terms so they auto-populate property records.
Drafted at lease signing; uploaded to Trove for OCR extraction.
Homeowner association paperwork: monthly statements, CC&Rs (covenants, conditions, restrictions), special assessment notices, and meeting minutes. CC&Rs are binding rules on what you can and can't do with the property.
Why it matters: HOA dues flow into operating expenses, but special assessments can be five-figure surprises. CC&Rs determine whether you can short-term-rent, paint, add an ADU, or run a business from home.
Issued by the HOA; uploaded to Trove for OCR extraction.
The federally-required final disclosure of loan terms and closing costs. By law, the lender must provide it at least 3 business days before closing. Compare against the Loan Estimate to verify nothing changed outside legal tolerances.
Why it matters: The CD is your last chance to catch surprises before signing. Items that exceed Loan Estimate tolerances must be refunded by the lender. Keep your CD; it establishes cost basis and is needed years later for sale and tax purposes.
Issued by the lender at closing; uploaded to Trove.
The federally-required disclosure of estimated loan terms within 3 business days of application. Standardized 3-page form so every lender quotes apples-to-apples.
Why it matters: The LE is your shopping tool. Get LEs from at least three lenders and compare interest rate, APR, total origination charges, and total interest paid over the loan life. Differences of even 0.125% on the rate are real money over 30 years.
Issued by the lender within 3 business days of application; uploaded to Trove.
The pre-2015 settlement statement, replaced for most consumer mortgages by the Closing Disclosure under the TRID rule. Still used today for cash deals, commercial transactions, and reverse mortgages.
Why it matters: If you bought before October 2015 or did a cash purchase, your closing record is a HUD-1, not a CD. Same job: itemizes purchase price, prorations, closing costs, and net to seller / from buyer. Critical for cost basis when you eventually sell.
Issued at closing for non-TRID transactions; uploaded to Trove.
The full stack of paperwork at a real estate closing: settlement statement (CD or HUD-1), deed, mortgage / deed of trust, title insurance policy, signed disclosures, and any addenda. Often delivered as a single PDF.
Why it matters: Keep every page forever. The closing bundle is the foundational record for cost basis, capital gains calculation on sale, refinance eligibility, and resolving title disputes years later.
Provided at closing by the title or escrow company; uploaded to Trove.
Annual or semi-annual bill from the county assessor (sometimes city or special district). Shows assessed value, taxable value (after exemptions), millage rate, and total tax due.
Why it matters: Property tax is one of the largest fixed expenses on most properties. The assessment can be appealed if it jumped significantly or doesn't match recent comparable sales. Tax bills are deductible on Schedule A (homeowners, capped) or Schedule E (investors, uncapped).
Issued annually or semi-annually by the county assessor; uploaded to Trove.
The full insurance contract or its declarations page. Specifies dwelling coverage, personal property coverage, liability limits, deductibles, perils covered, and exclusions (typically flood and earthquake unless added by rider).
Why it matters: Insurance is one of the most common documents that quietly under-covers as property values rise. Review limits annually. Landlord policies (DP-3) differ from homeowner policies (HO-3) in important ways for rentals.
Issued by your insurance carrier; uploaded to Trove for OCR extraction of coverage limits and renewal dates.
IRS form your lender sends each January reporting how much mortgage interest you paid the prior year. Required to be issued for any loan over $600 in interest.
Why it matters: Mortgage interest is your largest tax deduction in most years. Schedule A for primary residence (capped at interest on $750K of acquisition debt for newer loans); Schedule E for rentals. The 1098 is the IRS-blessed source figure.
Issued by your lender by January 31 each year; uploaded to Trove.
Family of IRS forms reporting various non-wage income. 1099-MISC for miscellaneous, 1099-NEC for contractor payments over $600, 1099-INT for interest, 1099-DIV for dividends, 1099-S for real estate transactions.
Why it matters: As an investor, you'll receive 1099-INTs from interest accounts and may need to issue 1099-NECs to unincorporated vendors paid over $600 (property managers, repair contractors, landscapers). Missing 1099 issuance is a common audit trigger.
Issued by the payer by January 31; uploaded to Trove.
A licensed appraiser's opinion of fair market value, typically ordered by the lender during purchase or refinance. Includes comparable sales analysis, property condition assessment, and a final value figure.
Why it matters: Appraisals drive refinance LTV calculations, cash-out refi limits, PMI removal eligibility, and property tax assessment appeals. A low appraisal can kill a deal; a high appraisal unlocks equity.
Ordered by the lender (typically) and paid by the borrower; uploaded to Trove.
The legal document that transfers ownership of real property. Recorded with the county. Common types: warranty deed (full guarantees), special warranty deed (limited), quitclaim deed (no warranties).
Why it matters: The deed is your proof of ownership. Critical when changing names (marriage, divorce, trust transfer, LLC formation). Re-recording mistakes can create chain-of-title issues that surface years later at sale.
Recorded with the county at closing; uploaded to Trove.
Annual analysis from your lender showing how much was held in escrow for property tax and insurance, what was paid out, and projected balance for the next year. Includes shortage or surplus calculation.
Why it matters: Escrow shortages cause monthly payment jumps mid-year. Spotting a shortage early (insurance premium hike, tax assessment bump) lets you front-load a deposit instead of taking a 10-15% payment increase.
Issued annually by your lender; uploaded to Trove.
A licensed inspector's assessment of property condition, typically before purchase. Covers structural, mechanical, electrical, plumbing, and major systems. Identifies safety issues, deferred maintenance, and code violations.
Why it matters: The inspection report is negotiation leverage during the purchase contingency window. Post-purchase, it becomes your prioritized to-do list and reserve-budget anchor. For BRRRR strategies, it informs the rehab scope.
Ordered by the buyer during the inspection contingency; uploaded to Trove.
A bill from a vendor for repair, maintenance, or capital improvement work. Should include itemized labor and materials, dates of service, and contractor license number.
Why it matters: Categorization matters: routine repairs are operating expenses (Schedule E line 14), but capital improvements raise cost basis and depreciate over years. Mis-categorizing CapEx as repairs is a common audit issue.
Issued by your vendor; uploaded to Trove.
A purchase record, often for materials (hardware store, paint, appliances) or services. Less formal than an invoice but still tax-relevant.
Why it matters: Keep receipts for any property-related purchase. Schedule E expenses (paint, supplies, small tools) and capital improvement materials (new flooring, fixtures) both need documentation if audited.
Collected at purchase; uploaded to Trove.
City or county authorization for renovation, addition, or major repair. Typically required for structural work, electrical, plumbing, roofing, and additions. Issued before work begins; closed out after final inspection.
Why it matters: Unpermitted work is a problem at sale (buyers and lenders ask), at insurance claim time (carriers can deny coverage), and at appraisal (assessor may not credit value). When in doubt, pull the permit.
Issued by the local building department; uploaded to Trove.
A landlord's per-unit summary of tenants, rent amounts, lease start and end dates, security deposits held, and current rent collection status. Standard requirement for commercial loan underwriting on multi-family properties.
Why it matters: For 5+ unit properties, the rent roll is the source of truth for revenue. Reconcile against monthly bank deposits to catch rent collection issues. Lenders weigh trailing-12-month rent rolls heavily for refis.
Maintained by the property owner or manager; uploaded to Trove.
A prospective tenant's application showing income, employment, rental history, references, and consent to background and credit checks. Often paired with an application fee.
Why it matters: Thorough applications catch problem tenants before lease signing. Standard underwriting: income at least 3x rent, no recent evictions, FICO above 600, verified employment.
Submitted by prospective tenant; uploaded to Trove for record-keeping.
Monthly statements for electricity, water, gas, internet, trash, or sewer. Either landlord-paid (master meter, included in rent) or tenant-paid (separate accounts).
Why it matters: Utility bills are an operating expense and a leak detector. A 200% spike usually means a slab leak, an irrigation valve stuck open, or a billing error. Catching it the same month saves real money.
Issued monthly by the utility provider; uploaded to Trove.
IRS form vendors complete to provide their tax identification number to a payer. Required before issuing a 1099 to that vendor.
Why it matters: Collect a W-9 from any unincorporated vendor (contractor, property manager, landscaper) before you pay them more than $600 in a year. Issuing a 1099 without the vendor's TIN triggers backup withholding requirements.
Completed by the vendor; uploaded to Trove for record-keeping.
A service contract covering repair or replacement of major appliances and home systems. Distinct from homeowner insurance, which covers damage from external events. Typical coverage: HVAC, water heater, plumbing, electrical, kitchen appliances.
Why it matters: Home warranties make sense for older systems with high replacement cost. For rentals, they shift maintenance unpredictability to a known annual fee. Read the fine print: pre-existing condition exclusions and per-claim service fees vary widely.
Issued by warranty provider; uploaded to Trove.
Result of a title search showing current owner, legal description, recorded liens, easements, encroachments, and any clouds on title. Issued by the title company before closing.
Why it matters: Hidden liens, easements, or claims can derail a sale or restrict use. The title report is the official record. Title insurance (a separate document) protects against title defects discovered after closing.
Issued by the title company before closing; uploaded to Trove.
