real-estate-investment

name

real-estate-investment

description

End-to-end real estate investment analysis skill. Use when users ask to analyze a property deal, run the numbers on a rental, evaluate real estate investments, build a pro forma, compare markets, calculate cap rate, cash-on-cash return, IRR, NOI, DSCR, equity multiple, or GRM. Also triggers on: BRRRR analysis, house hack evaluation, short-term rental (STR/Airbnb) analysis, commercial underwriting, multifamily deal analysis, syndication waterfall modeling, Monte Carlo simulation for real estate, sensitivity analysis on a deal, 1031 exchange planning, cost segregation analysis, depreciation calculations, real estate tax strategy, market comparison and scoring, rental property screening, deal screening, investor report generation, real estate financial modeling, property type comparison, rent-to-price analysis, development feasibility, land analysis, value-add underwriting, API integration for real estate data (Zillow, Redfin, AirDNA, Mashvisor, ATTOM, Rentcast, Census), or any real estate investment financial analysis task.

Real Estate Investment Analysis

Comprehensive real estate investment analysis — from deal screening through financial modeling to investor-ready output. Covers all property types, standard and advanced metrics, code generation, and tax-aware structuring.

Analysis Workflow

Follow this 6-step process for any deal or market analysis:

1. Define scope — Identify property type, investment strategy, and target output format
2. Gather data — Collect property financials, market data, and comps (use API reference if automating)
3. Build pro forma — Construct income statement: Gross Rent → Vacancy → EGI → OpEx → NOI → Debt Service → Cash Flow
4. Calculate returns — Apply appropriate metrics (see Quick Reference below)
5. Stress test — Run sensitivity analysis, scenarios, or Monte Carlo simulation
6. Report — Generate investor-ready output with recommendations

Quick Reference — Core Metrics

Metric	Formula	Typical Range
NOI	Effective Gross Income - Operating Expenses	Varies by asset
Cap Rate	NOI / Property Value	4-10% (market-dependent)
Cash-on-Cash	Annual Pre-Tax Cash Flow / Total Cash Invested	8-12% target
DSCR	NOI / Annual Debt Service	1.2x+ (lender minimum)
IRR	Discount rate zeroing NPV of all cash flows	15-20% target
Equity Multiple	Total Distributions / Total Capital Invested	2.0x+ over hold
GRM	Property Price / Annual Gross Rent	8-15 (lower = better)
Break-even Occ.	(OpEx + Debt Service) / Potential Gross Income	<85% preferred

For complete formulas, Python code, and Excel equivalents → load references/financial-metrics.md

Property Type Router

Select the analysis framework based on property type:

Property Type	Key Metrics	Rules of Thumb	Reference
SFR / Small Multi (1-4)	CoC, Cap Rate, DSCR	1% rule, 50% rule, 70% rule	references/property-types.md §Residential
BRRRR	ARV, Rehab ROI, Refi LTV	70% rule: Max buy = 70% ARV - repairs	references/property-types.md §Residential
House Hack	Effective housing cost, FHA terms	3.5% down FHA, self-sufficiency test	references/property-types.md §Residential
Large Multifamily (5+)	Per-unit metrics, NOI, Cap Rate	OpEx ratio 35-45%	references/property-types.md §Commercial
Commercial (Office/Retail)	Per-SF metrics, lease analysis	NNN vs Gross lease impact	references/property-types.md §Commercial
Short-Term Rental	RevPAR, ADR, Occupancy	Revenue = ADR x Occ x 365 - fees	references/property-types.md §STR
Land / Development	Absorption rate, dev pro forma	Total cost vs projected value	references/property-types.md §Land

Analysis Type Router

Select the analysis methodology based on what the user needs:

Need	Method	Reference File
Run the numbers on a deal	Pro forma + core metrics	references/financial-metrics.md
Stress test assumptions	Sensitivity analysis (bear/base/bull)	references/advanced-analysis.md §Sensitivity
Model uncertainty/risk	Monte Carlo simulation	references/advanced-analysis.md §MonteCarlo
Syndication distributions	Waterfall modeling (GP/LP splits)	references/advanced-analysis.md §Waterfall
Compare/score markets	Market scoring framework	references/market-analysis.md §Scoring
Pull market data via API	API integration patterns	references/market-analysis.md §APIs
Find and adjust comps	Comparable analysis	references/market-analysis.md §Comps
Optimize tax impact	Depreciation, cost seg, 1031	references/tax-strategy.md
Choose entity structure	LLC, LP, S-Corp comparison	references/tax-strategy.md §Entity

Output Format Selection

Adapt output to the user's request:

Spreadsheet-ready — Generate formatted tables with formulas. Use pandas DataFrames exported to CSV/Excel. Include Excel formula equivalents for each calculation.

Decision framework — Provide structured narrative analysis with go/no-go recommendation. Include risk factors, key assumptions, and sensitivity ranges.

Code generation — Produce Python scripts using numpy-financial and pandas. Include complete, runnable pro forma models, Monte Carlo simulators, or waterfall calculators.

Investor report — Combine all three: executive summary, financial tables, risk analysis, and appendix with methodology.

Operating Expense Benchmarks by Property Type

Property Type	OpEx Ratio (% of EGI)	Management Fee
Single-Family Rental	35-50%	8-10%
Small Multifamily (2-4)	35-45%	8-10%
Large Multifamily (5+)	35-45%	5-8%
Office	35-55%	3-5%
Retail (NNN)	15-25%	3-5%
Retail (Gross)	60-80%	3-5%
Industrial	15-25%	3-5%
Short-Term Rental	50-65%	20-25%

Key Tax Thresholds (2025-2026)

Strategy	Key Detail
Depreciation	Residential: 27.5yr, Commercial: 39yr (straight-line)
Bonus Depreciation	100% for property placed in service Jan 20, 2025 – Dec 31, 2030
Cost Segregation	Reclassify 15-40% of building into 5/7/15-yr assets
Section 179	$2.5M max deduction (2025), phase-out at $4M
1031 Exchange	45-day ID period, 180-day closing, like-kind real property only
Opportunity Zones	Made permanent (2025), 10-year gain exclusion on QOF investment

For complete tax analysis with IRS code references → load references/tax-strategy.md

API Quick Reference

Provider	Best For	Pricing	Auth
Mashvisor	STR + LTR rental data	$30-$120/mo	x-api-key header
AirDNA	STR performance data	$12-$599/mo	Bearer token
ATTOM	Deep property data (155M+ properties)	$850-$2K/mo	apikey param
Rentcast	Rental estimates	Free-$449/mo (50 free/mo)	X-Api-Key header
Census Bureau	Demographics, housing	Free (API key required)	key param
Redfin Data Center	Market trends	Free (CSV download)	None

For endpoint URLs, Python examples, and integration patterns → load references/market-analysis.md

Waterfall Distribution Quick Reference

Standard syndication tiers:

Tier	IRR Hurdle	LP Share	GP Share
1 (Return of Capital + Pref)	0-8%	100%	0%
2 (First Promote)	8-12%	90%	10%
3 (Second Promote)	12-18%	80%	20%
4 (Final Split)	18%+	60%	40%

Market data: 8% pref in 40% of deals, 10% pref in 30% of deals. 85% of waterfalls use IRR hurdles.

For complete waterfall mechanics, catch-up provisions, and Python calculator → load references/advanced-analysis.md

Reference File Index

Load the appropriate reference file based on the analysis need:

File	Contents	When to Load
references/financial-metrics.md	12 metrics with formulas, Python functions, Excel formulas, complete RealEstateProForma class, amortization schedules	Building a pro forma, calculating returns, generating Python/Excel models
references/advanced-analysis.md	Sensitivity tables, Monte Carlo simulation (Python), waterfall calculator, syndication LP/GP mechanics	Stress testing deals, modeling risk, syndication analysis
references/property-types.md	BRRRR framework, house hack analysis, commercial underwriting, STR revenue modeling, land development feasibility	Analyzing a specific property type with tailored frameworks
references/market-analysis.md	Market scoring with 15+ indicators, 6 API integrations with Python code, comp adjustment methodology, submarket signals	Comparing markets, pulling data via APIs, running comps
references/tax-strategy.md	Depreciation schedules, cost segregation savings, 1031 exchange rules, bonus depreciation (2025-2030), opportunity zones, entity structure comparison	Tax-optimizing a deal, choosing entity structure, planning exchanges

Audience Adaptation

• Beginner investors: Explain metric meanings, recommend starting with the 1% rule and cash-on-cash return, walk through pro forma line by line
• Experienced investors: Skip basics, lead with IRR and equity multiple, provide code/spreadsheet output, focus on sensitivity analysis and tax optimization
• Default to expert-level analysis unless context suggests otherwise