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DealLevel

DealLevel AI spots the numbers that look too good to be true.

Type in any rental’s address. It tells you if it’s a good deal.

Long-term rental1418 Birch LaneExample property

A one-story brick house with white shutters

$250,000

3 bed · 2 bath

Rents for $2,000 a month

DealLevel AI

Here to help you think through 1418 Birch Lane · Long-term rental
Is this a good deal?

No. At the current assumptions, the property loses $157 per month, after vacancy, operating expenses, and the mortgage.

What's the most I could pay for it and not lose money each month?

About $220,445, assuming the same 20% down payment, 7% interest rate, 30-year loan, rent, vacancy, and expenses.

DealLevel AI flags the numbers to double-check. Then it writes your questions for the seller.

DealLevel AI

Here to help you think through 1418 Birch Lane · Long-term rental

Hi. I went through the numbers on 1418 Birch Lane. Here is what stood out.

This deal is built around the $2,000 monthly rent staying dependable while a 30-year loan at 7% remains in place.

Assumptions worth arguing with

  • Rent of $2,000 a month This leans optimistic unless supported by signed leases or nearby, comparable rentals. A range to test is $1,900 to $2,000.
  • Vacancy of 5% This leans optimistic because one empty month has a large effect on a single unit. A range to test is 5% to 8%.
  • Prices rising 3% a year This leans optimistic because it depends on future market prices, not the property’s current condition. A range to test is 2% to 3%.

Questions for the seller or agent

  1. Can you provide the current lease, rent ledger, and proof of payments supporting the $2,000 monthly rent?
  2. How many days was the unit vacant between the last two tenants, and were there any unpaid rents or concessions?
  3. What major repairs, replacements, or insurance claims occurred during the last five years, especially for the roof, heating and cooling, plumbing, and electrical systems?

Long-term rental1418 Birch Lane

DealLevel AI

Here to help you think through 1418 Birch Lane · Long-term rental

Hi. I went through the numbers on 1418 Birch Lane. Here is what stood out.

This deal is built around the $2,000 monthly rent staying dependable while a 30-year loan at 7% remains in place.

Assumptions worth arguing with

  • Rent of $2,000 a month This leans optimistic unless supported by signed leases or nearby, comparable rentals. A range to test is $1,900 to $2,000.
  • Vacancy of 5% This leans optimistic because one empty month has a large effect on a single unit. A range to test is 5% to 8%.
  • Prices rising 3% a year This leans optimistic because it depends on future market prices, not the property’s current condition. A range to test is 2% to 3%.

Questions for the seller or agent

  1. Can you provide the current lease, rent ledger, and proof of payments supporting the $2,000 monthly rent?
  2. How many days was the unit vacant between the last two tenants, and were there any unpaid rents or concessions?
  3. What major repairs, replacements, or insurance claims occurred during the last five years, especially for the roof, heating and cooling, plumbing, and electrical systems?

DealLevel AI

Here to help you think through 1418 Birch Lane · Long-term rental

Hi. I went through the numbers on 1418 Birch Lane. Here is what stood out.

This deal is built around the $2,000 monthly rent staying dependable while a 30-year loan at 7% remains in place.

Assumptions worth arguing with

  • Rent of $2,000 a month This leans optimistic unless supported by signed leases or nearby, comparable rentals. A range to test is $1,900 to $2,000.
  • Vacancy of 5% This leans optimistic because one empty month has a large effect on a single unit. A range to test is 5% to 8%.
  • Prices rising 3% a year This leans optimistic because it depends on future market prices, not the property’s current condition. A range to test is 2% to 3%.

Questions for the seller or agent

  1. Can you provide the current lease, rent ledger, and proof of payments supporting the $2,000 monthly rent?
  2. How many days was the unit vacant between the last two tenants, and were there any unpaid rents or concessions?
  3. What major repairs, replacements, or insurance claims occurred during the last five years, especially for the roof, heating and cooling, plumbing, and electrical systems?

Ask DealLevel AI what a lower rent would cost you each month.

A one-story brick house with white shutters

$250,000

3 bed · 2 bath

Rents for $2,000 a month

DealLevel AI

Here to help you think through 1418 Birch Lane · Long-term rental
What if the rent only comes in at $1,850?

At $1,850 rent, effective income after 5% vacancy is $1,757.50 per month. Monthly cash flow falls to about negative $273, or negative $3,273 per year, so the deal is even farther from paying for itself.

Long-term rental1418 Birch Lane

This deal doesn't work

This deal does not quite pay for itself, and there is no room for anything to go wrong.

This deal doesn't work
−⁠$157
5.6%
−⁠3.3%
0.88
$57,500

What's behind this answer

  • Owning this would cost you $157 every month.
What would fix it

This works if you pay $220,000 or less. You are looking at $250,000.

DealLevel AI

Here to help you think through 1418 Birch Lane · Long-term rental
What rent would I need to break even?

You would need about $2,204 per month in gross rent to break even. That is about $204 more than the current $2,000 rent, after 5% vacancy, operating expenses, and the $1,330.60 monthly mortgage.

1418 Birch Lane

Long-term rental

DealLevel AI

Here to help you think through 1418 Birch Lane · Long-term rental
What rent would I need to break even?

You would need about $2,204 per month in gross rent to break even. That is about $204 more than the current $2,000 rent, after 5% vacancy, operating expenses, and the $1,330.60 monthly mortgage.

DealLevel AI picks out the exact house when you scan the one in front of you.

  • Address
  • Price
  • Property tax

Example property

Long-term rental48 Alder Lane

This deal doesn't work

This deal loses money every month. The numbers do not support it.

This deal doesn't work
−⁠$223
5.6%
−⁠3.4%
0.88
$78,200

What's behind this answer

  • Owning this would cost you $223 every month.
What would fix it

This works if you pay $298,000 or less. You are looking at $340,000.

$340,000

Drag to see the answer at another price.

Long-term rental48 Alder Lane

This deal doesn't work

This deal loses money every month. The numbers do not support it.

This deal doesn't work
−⁠$223
5.6%
−⁠3.4%
0.88
$78,200

What's behind this answer

  • Owning this would cost you $223 every month.
What would fix it

This works if you pay $298,000 or less. You are looking at $340,000.

$340,000

Drag to see the answer at another price.

Ask DealLevel AI about a flip or a short-term rental.

A log cabin on a lake

$350,000

Lake house

$375 a night on Airbnb

DealLevel AI

Here to help you think through Lake house, $350,000 · Short-term rental
How many nights a month does it need to be booked so I don't lose money?

At the $375 average nightly rate, it needs about 16 booked nights per month to break even after operating costs and the $1,863 mortgage payment.

Fix & flipFlip, $150,000

This deal works

This flip works, with enough margin to absorb a surprise.

This deal works
$37,525
87.3%
174.6%
$147,500
$237,475

What's behind this answer

  • $37,525 of profit on a $275,000 sale, a 13.6% margin.
  • 175% a year on $42,975 of your own cash, held 6 months.
  • You are paying $2,500 above the 70% rule's ceiling of $147,500. The profit rests on the finished value being right.
  • Selling costs alone take $22,000 off the top, and they are already counted in these numbers.
Biggest risk

It stops working if the sale comes in under $234,212. You are projecting $275,000, so the sale has 15% of room before the profit is gone.

DealLevel AI

Here to help you think through Flip, $150,000 · Fix & flip
What if it only sells for $250,000?

Your net profit would be $14,525, a 5.8% profit margin and a 33.8% return on your $42,975 cash invested. The flip still works in the model, but the cushion is much thinner.

Flip, $150,000

Fix & flip

DealLevel AI

Here to help you think through Flip, $150,000 · Fix & flip
What if it only sells for $250,000?

Your net profit would be $14,525, a 5.8% profit margin and a 33.8% return on your $42,975 cash invested. The flip still works in the model, but the cushion is much thinner.

Example properties and figures

See what DealLevel AI finds in the rental you’re looking at.

Things people ask DealLevel AI: Is this a good deal? What rent would I need to break even? What is the weakest number here? What if the rent only comes in at $1,850? What should I ask the seller before I make an offer? Which assumption should I double-check first? What if it only sells for $250,000? How many nights a month do I need to break even?