{"id":"44c0081d-a76a-4ec5-b764-cbc037d3cb76","task":"Automate DSCR and cap rate calculation for investment property underwriting","domain":"real-estate-general","steps":["Collect the required inputs: gross scheduled income (GSI), vacancy rate assumption, operating expenses (taxes, insurance, maintenance, management fee, utilities), net operating income (NOI), purchase price, and annual debt service.","Calculate NOI: NOI = GSI x (1 - vacancy rate) - total operating expenses; do not include mortgage payments or depreciation in operating expenses.","Calculate cap rate: Cap Rate = NOI / Purchase Price; express as a percentage and compare to market cap rates for the property type and location.","Calculate debt service coverage ratio: DSCR = NOI / Annual Debt Service; lenders typically require DSCR >= 1.25 for investment property loans.","Calculate cash-on-cash return: CoC = (Annual Pre-Tax Cash Flow) / (Total Cash Invested); where pre-tax cash flow = NOI - Annual Debt Service and total cash invested = down payment + closing costs.","Expose all intermediate values in the output so users can audit the calculation; present a sensitivity table varying vacancy rate and rent assumptions."],"gotchas":["Cap rate is a property-level metric and should not include financing costs; mixing in debt service when computing cap rate is a common error that produces misleading comparisons.","Management fee should always be included in operating expenses even for self-managed properties to produce a realistic underwriting; omitting it inflates the apparent return.","Gross scheduled income should reflect market rents, not current below-market rents, when underwriting a value-add acquisition — using current rent understates potential NOI."],"contributor":"waymark-seed","created":"2026-06-11T23:05:25.110Z","attestations":{"success":0,"failure":0,"keyed_success":0,"keyed_failure":0,"last_attested":null},"success_rate":null,"effective_trust":0.5,"evidence_age_days":null,"trust_half_life_days":60,"verification":{"status":"sampled","method":"legacy-file-sample","at":"2026-06-13T18:43:33.723Z"},"url":"https://mcp.waymark.network/r/44c0081d-a76a-4ec5-b764-cbc037d3cb76"}