Real Estate Investment Analyzer

Prompt

Analyze the following real estate investment opportunity and provide a comprehensive financial assessment.

Property details:
- Address: [ADDRESS OR 'HYPOTHETICAL']
- Property type: [SINGLE FAMILY / MULTI-FAMILY / COMMERCIAL / SHORT-TERM RENTAL]
- Purchase price: [AMOUNT]
- Down payment: [PERCENTAGE OR AMOUNT]
- Mortgage rate: [RATE]% for [TERM] years
- Estimated rental income: [MONTHLY AMOUNT]
- Current occupancy rate of comparable properties: [PERCENTAGE]

Operating expense estimates:
- Property taxes: [ANNUAL AMOUNT]
- Insurance: [ANNUAL AMOUNT]
- HOA (if applicable): [MONTHLY AMOUNT]
- Property management: [PERCENTAGE OF RENT]
- Maintenance reserve: [PERCENTAGE OF VALUE]
- Other expenses: [LIST]

Calculate and analyze:

1. **Cash Flow Analysis** — Monthly and annual cash flow before and after tax.

2. **Return Metrics** — Cap rate, cash-on-cash return, gross rent multiplier, and total ROI.

3. **Financing Analysis** — Debt service coverage ratio. Is this property self-sustaining?

4. **Break-Even Analysis** — What occupancy rate do I need to cover all expenses?

5. **Appreciation Scenario** — 10-year wealth projection at [X]% annual appreciation.

6. **Tax Implications** — Depreciation benefit, mortgage interest deduction, 1031 exchange potential.

7. **Risk Assessment** — Vacancy risk, maintenance risk, market risk, financing risk.

8. **Go / No-Go Recommendation** — With specific criteria for what would change the recommendation.