Investor cash before refinance equals purchase, rehab, acquisition closing costs and holding costs, less acquisition debt advanced at purchase. Net returned cash is the selected new loan less acquisition lender payoff and refinance fees. Subtract returned cash once to obtain signed cash left. Refinance proceeds are borrowed money, not property profit or a tax conclusion.
Binding refinance assumptions
The selected loan is the smallest supported amount from ARV × LTV and any entered DSCR, cost-basis and absolute caps. A required seasoning period can prevent refinancing. DSCR uses annual NOI divided by annual debt service; zero debt service makes that ratio undefined. These are user-entered assumptions, not a loan approval or appraisal.
Operating cash, reserves and DSCR
Annual NOI equals scheduled rent after the entered vacancy allowance, less operating expenses. Separate capital reserves reduce operating cash, but not NOI. Monthly cash after debt subtracts both reserves and the amortizing mortgage payment. Do not also include the same vacancy or reserves in operating expenses. An outstanding acquisition loan without a modeled ongoing repayment schedule leaves post-refinance cash flow unavailable.
Project timing and peak capital
Purchase funding occurs at project month 0. Three equal rehab draws occur through the selected completion month; blank uses half the hold. Carrying cost is paid monthly using the chosen principal basis and any additional monthly cost. Stabilized rent and operating expenses describe the period after refinancing. Calendar labels use purchase month plus elapsed project months. Peak capital is the largest cumulative investor cash deficit.
Stress appraisal value, rehab cost, delay and rent independently. A project can recover its cash while producing an operating loss. No future appreciation, sale, tax liability, loan approval or future refinance is promised.