Rental Deal Memo
Turn raw deal numbers into a one-page investment memo: summary, returns, DSCR, key assumptions, risks and a go/no-go recommendation with conditions.
New Added
Use it when
Make your underwriting easy to share with partners, lenders or your future self, and stress-test whether the deal still works when assumptions change.
Not for
Replacing your own spreadsheet math. The AI should restate and stress-test your numbers, not invent them.
The prompt
Fill in the variables (optional)
Type below and the prompt updates. Anything you leave blank stays as a {{variable}} for you to fill in later. Nothing you type leaves your browser.
Buy-and-hold, BRRRR, flip, short-term rental
Basic description (no owner names)
Price, down, rate, rent, taxes, insurance, HOA, vacancy, repairs, capex, management
Your minimums
You are a disciplined rental property underwriter. Write a one-page deal memo using ONLY the numbers I provide. If a number is missing, list it under "Missing inputs" instead of assuming. Strategy: {{strategy}} Property: {{property}} Numbers: {{numbers}} My return targets: {{targets}} Sections: 1. DEAL SUMMARY (3 sentences) 2. KEY METRICS: monthly cash flow, cash-on-cash return, cap rate, DSCR (rent ÷ PITIA), total cash needed. Show the math for each in one line. 3. SENSITIVITY: recompute cash flow and DSCR if (a) rent is 10% lower, (b) vacancy doubles, (c) rate is 1 point higher. 4. ASSUMPTIONS that drive the result, and which are weakest 5. RISKS (top 5) with a mitigation for each 6. RECOMMENDATION: Pursue / Pursue with conditions / Pass, with the conditions 7. MISSING INPUTS / DILIGENCE QUESTIONS Keep it under 450 words. Use a table for metrics.
Variables
| Variable | What to enter | Example |
|---|---|---|
{{strategy}} | Buy-and-hold, BRRRR, flip, short-term rental | buy-and-hold, long-term rental, DSCR loan |
{{property}} | Basic description (no owner names) | 3BR/2BA single-family, built 1985, mid-size Midwest metro |
{{numbers}} | Price, down, rate, rent, taxes, insurance, HOA, vacancy, repairs, capex, management | Price $240,000; 25% down; 7.25% 30-yr; rent $2,050; taxes $3,600/yr; insurance $1,500/yr; vacancy 5%; repairs 5%; capex 5%; management 8%; closing $7,000 |
{{targets}} | Your minimums | DSCR ≥ 1.20, cash-on-cash ≥ 6% |
Example output
Illustrative output using the example values. Your results will vary by AI tool and inputs. All names and details are fictional.
1. DEAL SUMMARY: A $240,000 3/2 single-family purchased with 25% down on a 7.25% DSCR loan, renting for $2,050... 2. KEY METRICS | Metric | Value | Math | |---|---|---| | Loan amount | $180,000 | 240,000 × 75% | | P&I | $1,227.92 | 30-yr at 7.25% | | PITIA | $1,652.92 | 1,227.92 + 300 + 125 | | DSCR | 1.24 | 2,050 ÷ 1,652.92 | | Cash flow | −$74/mo | 2,050 − 1,652.92 − 471.50 reserves/mgmt (23% of rent) | | Cash needed | $67,000 | 60,000 down + 7,000 closing | 3. SENSITIVITY: At rent −10% ($1,845), DSCR falls to 1.12, below the 1.20 target, and cash flow worsens to about −$232/mo... 6. RECOMMENDATION: Pass at asking. DSCR clears the lender's bar, but the deal loses money after reserves. Reconsider at a lower price or with verified rent of $2,150 or more.
Tips
- Run the DSCR Loan Calculator first and paste its outputs into the numbers block.
- Ask the AI to "check my math" separately; it catches transposed numbers.
Related calculator: DSCR Loan Calculator. Run the numbers first, then paste them into the prompt.
Works in
Don't paste anything you're not allowed to share (SSNs, bank details, private tenant records) into an AI tool. Check your company's AI policy.
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