The Universal Calculation Engine
The Universal Calculation Engine

Turnkey rental versus value add with vacancy risk

Part of: Good Deal vs Bad Deal

Compare deal quality across deals only after rent, vacancy, reserves, and loan terms match.

Fair compare

Two properties can “cash the same” with different roofs, tenants, and financing. Compare full rows, not one cell.

Rule: same vacancy rule, same loan structure, same reserve, same years. Then rank deal quality.

Read both

Headline price or past performance is marketing. Rewrite each option as cash in and out by month or year.

Walk back to Good Deal vs Bad Deal, then reopen Related lesson with your figures.

Check your numbers now

Two real rows

Building A cheaper per door but older HVAC; Building B newer with HOA special assessment risk. Price alone misleads until capex is lined up.

Checklist

Looks better firstAfter you align deal quality
Lower askHigher all-in monthly
Higher rentMore maintenance
Shorter driveHigher tax
Good Deal vs Bad Deal: same rules for both
Then choose

Match rules

Core lesson

Related: Good Deal vs Bad Deal. To test sensitivity, change one input at a time in the calculator.

Use the calculator

FAQ

Where is the main lesson?

Good Deal vs Bad Deal is the hub with related lessons linked from it.

Which calculator should I open first?

Use Rent vs buy or Home afford for housing tradeoffs; Loan or Amortization for payments and equity.