Astamar Asset Management

Astamar Underwriting Engine

All outputs annualized. IRR uses annual periods.

Baseline workflow

Edits apply to your working case. Stress scenarios overlay shocks only in the comparison panel — they do not change these inputs. Save when you want a new baseline to reset to.

Input Panel

Working assumptions

Acquisition

Purchase price

Closing costs

Renovation / CapEx budget

Acquisition fee

Debt

Loan amount

Loan fees

Interest rate

Amortization period

years

Interest-only period

years

Operations

Gross scheduled income

annual

Vacancy rate

Other income

annual

Operating expenses

annual

Rent growth rate

% / yr

Expense growth rate

% / yr

Exit

Hold period

years

Exit cap rate

Selling costs percentage

Summary Output

NOI (Year 1)

$789K

Annual debt service (Yr 1)

$508K

DSCR (Year 1)

1.55×

Cash flow before tax (Yr 1)

$281K

Cash-on-cash return

5.04%

Equity multiple

1.72×

Levered IRR

12.36%

Net sale proceeds

$8,254,328

IRR cash flows (debug)

Period	Operating	Net sale	IRR CF
t = 0	—	—	-$6M
t = 1	$281K	—	$281K
t = 2	$307K	—	$307K
t = 3	$227K	—	$227K
t = 4	$255K	—	$255K
t = 5	$284K	$8M	$9M

Loan balance by year (debug)

IO months: 24, amort months: 336, amort payment: $615,206 / yr

Year	Begin balance	Debt service	Interest paid	Principal paid	End balance
1	$8,125,000	$507,812	$507,812	$0	$8,125,000
2	$8,125,000	$507,812	$507,812	$0	$8,125,000
3	$8,125,000	$615,206	$504,682	$110,524	$8,014,476
4	$8,014,476	$615,206	$497,573	$117,633	$7,896,843
5	$7,896,843	$615,206	$490,007	$125,199	$7,771,644

Exit math (debug)

Year-5 net to equity = operating $284,211 + net sale $8,254,328 = $8,538,539

Net sale proceeds = gross exit $16,353,033 − selling $327,061 − loan payoff $7,771,644 = $8,254,328

Gross exit value: $16,353,033

Selling costs: $327,061

Remaining loan @ exit: $7,771,644

Net sale proceeds: $8,254,328

Deal Profile

Profile

Speculative

Not investable under current structure

Primary Risk Driver

Leverage

Primary Failure Point: Exit Value Compression

Highlights

Base IRR

12.36%

Downside IRR

-2.66%

Downside DSCR

1.15×

LTV (loan ÷ purchase)

65.00%

Downside multiple

0.88×

Downside Protection

Capital at Risk (0.88×)

Explanation

Conclusion: the deal is speculative because the downside case impairs equity capital at current assumptions. Operating coverage is tight under stress (downside DSCR 1.15×). However, the downside case implies capital impairment for equity (downside IRR -2.66%; multiple 0.88×), driven by reduced exit proceeds. Leverage is the primary driver of equity loss (LTV 65.00%).

Downside assumptions used

IR +1.50%, Exit cap +0.75%, Vac +5.00%, Exp +1.50%

Equity breakdown

Levered — cash to equity

Total equity invested (t=0)

Uses (price, closing, CapEx, fees, loan fees) − loan

$5,581,250

Cumulative operating cash (years 1 to H−1)

After-debt, before exit

$1M

Final year operating cash (year H)

After-debt, before disposition

$284K

Net proceeds at exit (year H)

After selling costs and loan payoff

$8,254,328

Total cash distributions to equity

Operating (all years) + net exit proceeds

$9,609,717

Equity multiple (total distributions ÷ equity)

$9,609,717 ÷ $5,581,250

1.72×

Base case

The working inputs in the left panel define the base case. Downside and upside are parallel overlays for comparison only — they do not overwrite your inputs.

Downside case — adjustable stress

Interest rate add-on+1.5%

Absolute points added to the loan coupon (+1.0% to +2.0%).

Exit cap expansion+0.75%

Absolute points added to the exit cap (+0.50% to +1.00%).

Vacancy increase+5%

Absolute points added to vacancy (+3% to +8%; default stress +5%).

Expense growth add-on+1.5%

Absolute points added to annual expense growth (+1.0% to +2.0%).

Upside case — positive overlay

Rent growth add-on+1%

Additional annual rent / other income growth (+0.5% to +2.0%).

Exit cap compression−0.5%

Absolute points removed from exit cap (25–100 bps tighter reversion).

Vacancy improvement−1%

Absolute points shaved off vacancy (50–200 bps), floored at 1% vacancy.

Investment decision

Rule-based classification using Base and stressed (Downside) performance

Reject

Base

IRR12.36%

DSCR1.55×

Downside (stress)

IRR-2.66%

DSCR1.15×

Eq. multiple0.88×

Upside

IRR19.49%

DSCR1.58×

Why

Downside IRR is negative (-2.66%).
Downside equity multiple is below 1.0× (0.88×).

Instant scenario comparison

Base uses your working inputs. Downside and Upside are temporary overlays — inputs in the left panel are not modified.

Metric	Base	Downside	Δ vs base	Upside	Δ vs base
NOI (year 1)	$789K	$722K	−$68K	$803K	+$14K
Annual debt service (year 1)	$508K	$630K	+$122K	$508K	$0
DSCR (year 1)	1.55×	1.15×	−0.41	1.58×	+0.03
Cash flow before tax (year 1)	$281K	$92K	−$189K	$295K	+$14K
Levered IRR	12.36%	-2.66%	−15.03%	19.49%	+7.13%
Equity multiple	1.72×	0.88×	−0.84×	2.31×	+0.59×
Exit value (gross reversion)	$16M	$13M	−$4M	$19M	+$3M

Margin of Safety

Downside reversion cushion and equity remaining after loan payoff

Thin Margin

Downside implied exit value

$13M

Cushion vs purchase: +$120K(+0.96%)

Equity remaining after loan payoff

$5M

Loan payoff at exit: $8M

Warning: Downside equity multiple is 0.88× (below 1.0×), indicating capital impairment under the selected downside.

Scenario summary

Strengths

Year-1 DSCR of 1.55× provides meaningful IO / amort cushion.
Levered IRR of 12.36% clears many sponsor hurdle rates in stable assets.
Upside rent growth and cap compression add +7.13% to levered IRR vs. base.

Key risks

Downside cuts DSCR by −0.41 vs. base (1.15×).
Levered IRR falls −15.03% vs. base under the downside overlay.
Gross reversion value declines materially (−$4M vs. base) from higher exit cap and weaker NOI path.
Classification: Speculative — primary risk driver is leverage; align with IC on mitigants and exit certainty.

What breaks first (downside)

Equity yield breaks first: levered IRR under downside is -2.66% (single-digit), even though DSCR is 1.15×.

5-Year Projection Table

Annual

Year	Gross income	Vacancy loss	Effective gross	Operating expenses	NOI	Debt service	Cash flow	Sale proceeds	Net CF to equity
1	$1M	-$81K	$1M	-$525K	$789K	-$508K	$281K	—	$281K
2	$1M	-$83K	$1M	-$538K	$815K	-$508K	$307K	—	$307K
3	$1M	-$86K	$1M	-$552K	$842K	-$615K	$227K	—	$227K
4	$2M	-$89K	$1M	-$565K	$870K	-$615K	$255K	—	$255K
5	$2M	-$91K	$1M	-$580K	$899K	-$615K	$284K	$8M	$9M

Levered IRR sensitivity

Rows: rent growth (annual). Columns: exit cap rate. Downside cells highlighted; lowest IRR cell outlined.

Base case Downside (weak vs base or low growth / high cap) Worst IRR in grid

Rent growth ↓	Exit cap 4.00%	Exit cap 4.50%	Exit cap 5.00%	Exit cap 5.50%	Exit cap 6.00%	Exit cap 6.50%	Exit cap 7.00%
1.50%	20.17%	15.77%	11.67%	7.78%	4.03%	0.34%	-3.35%
2.00%	21.54%	17.20%	13.17%	9.37%	5.72%	2.16%	-1.37%
2.50%	22.87%	18.58%	14.62%	10.90%	7.34%	3.89%	0.49%
3.00%	24.17%	19.93%	16.02%	12.36%	8.89%	5.53%	2.25%
3.50%	25.43%	21.23%	17.38%	13.78%	10.37%	7.10%	3.93%
4.00%	26.66%	22.50%	18.69%	15.15%	11.81%	8.61%	5.52%
4.50%	27.86%	23.74%	19.97%	16.48%	13.19%	10.06%	7.04%