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

Exit NOI basis

cap rate applied to

Summary Output

NOI (Year 1)

$1,311,000

Annual debt service (Yr 1)

DSCR (Year 1)

N/A

Cash flow before tax (Yr 1)

$1,311,000

Cash-on-cash return

20.13%

Equity multiple

4.16×

Levered IRR

49.53%

Net sale proceeds

$21,453,348

IRR cash flows (debug)

Period	Operating	Net sale	IRR CF
t = 0	—	—	-$6,510,000
t = 1	$1,311,000	—	$1,311,000
t = 2	$1,371,000	—	$1,371,000
t = 3	$1,434,000	—	$1,434,000
t = 4	$1,500,000	$21,453,000	$22,953,000

Loan balance by year (debug)

IO months: 24, amort months: 336, amort payment: $0 / yr

Year	Begin balance	Debt service	Interest paid	Principal paid	End balance
1	$0	$0	$0	$0	$0
2	$0	$0	$0	$0	$0
3	$0	$0	$0	$0	$0
4	$0	$0	$0	$0	$0

Exit math (debug)

Year-4 net to equity = operating $1,499,545 + net sale $21,453,348 = $22,952,894

Net sale proceeds = gross exit $21,891,172 − selling $437,823 − loan payoff $0 = $21,453,348

Gross exit value: $21,891,172

Selling costs: $437,823

Remaining loan @ exit: $0

Net sale proceeds: $21,453,348

Deal Profile

Profile

Opportunistic

Investable with exit and income underwriting discipline

Primary Risk Driver

Exit valuation and income sustainability

Primary Failure Point: Exit value compression

Highlights

Base IRR

49.53%

Downside IRR

42.68%

LTV

0% (no debt)

Downside multiple

3.5×

Downside Protection

Capital Preserved (3.5×)

Explanation

Conclusion: the deal is opportunistic — strong base returns (IRR 49.53%) with primary risk in exit valuation and income sustainability. There is no debt service; stress performance is driven by the income path and exit reversion (downside IRR 42.68%). Equity capital is preserved under the standardized downside (downside IRR 42.68%; multiple 3.5×).

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

$6,510,000

Cumulative operating cash (years 1 to H−1)

After-debt, before exit

$4,116,000

Final year operating cash (year H)

After-debt, before disposition

$1,500,000

Net proceeds at exit (year H)

After selling costs and loan payoff

$21,453,348

Total cash distributions to equity

Operating (all years) + net exit proceeds

$27,068,512

Equity multiple (total distributions ÷ equity)

$27,068,512 ÷ $6,510,000

4.16×

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

Strong Buy

Base

IRR49.53%

DSCRN/A

Downside (stress)

IRR42.68%

DSCRN/A

Eq. multiple3.5×

Upside

IRR53.84%

DSCRN/A

Why

Base IRR 49.53% meets the 15%+ target.
Downside IRR 42.68% stays ≥ 8% with no debt service — risk is concentrated in exit and income durability.

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)	$1,311,000	$1,215,000	−$95,000	$1,330,000	+$19,000
Annual debt service (year 1)	$0	$0	$0	$0	$0
DSCR (year 1)	N/A	N/A	—	N/A	—
Cash flow before tax (year 1)	$1,311,000	$1,215,000	−$95,000	$1,330,000	+$19,000
Levered IRR	49.53%	42.68%	−6.85%	53.84%	+4.32%
Equity multiple	4.16×	3.5×	−0.66×	4.64×	+0.48×
Exit value (gross reversion)	$21,891,000	$17,990,000	−$3,901,000	$24,909,000	+$3,018,000

Margin of Safety

Downside reversion cushion and equity remaining after loan payoff

Adequate Margin of Safety

Downside implied exit value

$17,990,000

Cushion vs purchase: +$12,605,000(+234.07%)

Equity remaining after loan payoff

$17,990,000

Loan payoff at exit: $0

Scenario summary

Strengths

Unlevered structure removes lender coverage risk; underwriting hinges on income durability and exit pricing.
Levered IRR of 49.53% supports a competitive risk-adjusted return.
Upside rent growth and cap compression add +4.32% to levered IRR vs. base.

Key risks

Levered IRR falls −6.85% vs. base under the downside overlay.
Gross reversion value declines materially (−$3,901,000 vs. base) from higher exit cap and weaker NOI path.
Classification: Opportunistic — primary risk driver is exit valuation and income sustainability; align with IC on mitigants and exit certainty.

What breaks first (downside)

Under the selected downside, the largest swing is in reversion value ($17,990,000 vs. $21,891,000 base).

4-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	$1,950,000	-$114,000	$1,836,000	-$525,000	$1,311,000	-$0	$1,311,000	—	$1,311,000
2	$2,028,000	-$119,000	$1,909,000	-$538,000	$1,371,000	-$0	$1,371,000	—	$1,371,000
3	$2,109,000	-$124,000	$1,985,000	-$552,000	$1,434,000	-$0	$1,434,000	—	$1,434,000
4	$2,193,000	-$129,000	$2,065,000	-$565,000	$1,500,000	-$0	$1,500,000	$21,453,000	$22,953,000

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 5.35%	Exit cap 5.85%	Exit cap 6.35%	Exit cap 6.85%	Exit cap 7.35%	Exit cap 7.85%	Exit cap 8.35%
2.50%	54.92%	52.14%	49.66%	47.43%	45.41%	43.57%	41.88%
3.00%	55.66%	52.87%	50.37%	48.13%	46.10%	44.25%	42.55%
3.50%	56.40%	53.59%	51.09%	48.83%	46.79%	44.93%	43.22%
4.00%	57.14%	54.31%	51.79%	49.53%	47.48%	45.60%	43.89%
4.50%	57.87%	55.03%	52.50%	50.22%	48.16%	46.28%	44.55%
5.00%	58.60%	55.74%	53.20%	50.91%	48.84%	46.95%	45.21%
5.50%	59.32%	56.45%	53.90%	51.60%	49.51%	47.61%	45.87%