REPC

Real Estate

Real Estate Portfolio Cash Flow Calculator

Aggregate three properties while preserving asset-level value, debt, NOI, debt service, DSCR, leverage, cash flow, and concentration risk.

Three-asset portfolio lens

Aggregate cash flow without hiding weak asset-level debt coverage

Enter value, debt, NOI, and annual debt service for three properties. Portfolio totals are weighted correctly while the bubble view preserves each asset’s leverage and DSCR.
Property A
Property B
Property C
Portfolio value$2,000,000
Portfolio equity$790,000
Annual cash flow$62,400
Portfolio LTV60.5%
Portfolio DSCR1.58x
Largest-value concentration45.5%

Risk relationship

Asset leverage versus debt-service coverage

Bubble area follows property value. The upper-left zone combines lower leverage with stronger debt coverage.

Detailed calculation process

Sum dollars first; calculate portfolio ratios from the summed denominators

General symbolic formulas

V = ΣViD = ΣDiNOI = ΣNOIiCF = Σ(NOIi - Si)LTV = D / VDSCR = NOI / ΣSiConcentration = max(Vi) / V

Portfolio LTV is total debt divided by total value, not the simple average of property LTVs. Portfolio DSCR likewise uses total NOI over total debt service.

Symbols and units

Vi property value ($)Di secured debt ($)NOIi annual net operating income ($/year)Si annual debt service ($/year)CF annual after-debt cash flow ($/year)LTV loan-to-value (decimal)DSCR coverage ratio (dimensionless)i property index

Worked substitution with current inputs

Asset-level reconciliation

PropertyValueDebtLTVNOIDebt serviceDSCRCash flow

Use steps

  1. Use the same valuation date and NOI definition for all properties.
  2. Enter scheduled annual debt service, not loan balance.
  3. Inspect each asset as well as the portfolio total.

Practical decisions

Disposition: remove a weak asset by setting its four values near zero and compare coverage.

Acquisition: place a candidate in Property C to test leverage and concentration.

Limitations

The three-asset snapshot omits cross-collateralization, taxes, capital reserves, maturity dates, rate resets, correlation, liquidity, sale costs, and probability-weighted vacancies.

Portfolio cash-flow FAQ

Can strong properties hide a weak one?

Yes. Portfolio DSCR may pass while one bubble remains below a 1.0x coverage line.

Why not average the three LTV percentages?

A simple average incorrectly gives a small property the same weight as a large property.

Is equity equal to cash invested?

No. It is current entered value less current debt and excludes transaction costs and tax basis.