Docs navigation
Methodology

The deal scoring engine

Every analyzed deal in REIzer gets a 0–100 score. The score is not a magic number — it is a weighted rubric over the same underwriting metrics an experienced investor would check by hand, graded on a rubric built for that deal's strategy. This page documents the exact metrics, weights, normalization bands, and verdict thresholds.

How a score is computed

Three steps:

Verdict bands

ScoreVerdict
75–100Strong
55–74Solid
35–54Thin
0–34Weak

Strategy-aware rubrics

A flip and a buy-and-hold rental should not be graded on the same metrics — a flip has no monthly cash flow, and a rental has no sale margin. Each strategy is scored on a rubric built from the metrics that actually apply to it, so a 78/100 Short-Term Rental and a 78/100 Flip both mean "strong for its type." Weights are relative and auto-normalized.

StrategyRubric (relative weights)
Long-Term RentalCash-on-cash 25 · Cap rate 20 · DSCR 20 · 10-yr equity multiple 20 · Monthly cash flow 15
Short-Term RentalCash-on-cash 25 · 10-yr equity multiple 25 · Break-even occupancy 20 · Cap rate 15 · DSCR 15
MultifamilyCap rate 25 · Cash-on-cash 20 · DSCR 20 · 10-yr equity multiple 20 · Monthly cash flow per unit 15
BRRRRCapital recovery at refi 30 · Cash-on-cash 20 · 10-yr equity multiple 20 · DSCR 15 · Cap rate 15
Fix-n-FlipAfter-tax annualized ROI 40 · After-tax margin 30 · Cushion vs ARV 15 · 70% rule check 15
New ConstructionBTS after-tax annualized ROI 40 · BTS after-tax margin 30 · BTR development spread 15 · BTR capital recovery 15

New Construction grades both exits: if the build-to-rent metrics aren't populated (a pure build-to-sell project), they're skipped and the score re-weights onto the BTS metrics without penalty.

Normalization bands and thresholds

The key metrics, the band each is normalized over, and the qualitative thresholds REIzer reports:

MetricFormulaNormalized overThresholds
Cash-on-cash returnAnnual cash flow ÷ cash invested0% – 20%≥10% excellent · ≥5% OK · <5% thin
Cap rateNOI ÷ purchase price0% – 12%≥8% excellent · ≥5% OK · <5% thin
DSCRNOI ÷ annual debt service1.0 – 1.8≥1.25 lender-friendly · ≥1.0 borderline · <1.0 negative
Break-even occupancy(Fixed costs + debt service) ÷ gross potential revenue40% – 90% (lower is better)≤50% comfortable · ≤60% tight · >60% fragile
10-yr equity multipleProjected 10-yr equity ÷ cash invested0× – 5×≥3× excellent · ≥1.5× OK · <1.5× weak
Monthly cash flowAnnual cash flow ÷ 12 (÷ units for multifamily)$0 – $500/mo per unit≥$300 strong · ≥$0 thin · <$0 bleeding
Capital recovery at refi (BRRRR)Cash returned at refi ÷ total cash invested0% – 100%≥100% full recycle · ≥70% partial · <70% stuck
After-tax annualized ROI (flip)(After-tax profit ÷ cash invested) × (12 ÷ hold months)0% – 50%≥30% excellent · ≥15% OK · <15% thin
After-tax margin (flip)After-tax profit ÷ ARV0% – 25%≥10% excellent · ≥5% OK · <5% thin
Cushion vs ARV (flip)(ARV − all-in cost) ÷ ARV0% – 30%≥20% comfortable · ≥10% OK · <10% tight
70% rule check (flip)(Purchase + rehab) ≤ 0.70 × ARVpass / failsee DSCR & the 70% rule
BTS annualized ROI (new construction)(After-tax profit ÷ cash invested) × (12 ÷ total months)0% – 40%≥20% excellent · ≥10% OK · <10% thin
BTS after-tax marginAfter-tax profit ÷ sale price0% – 25%≥15% excellent · ≥10% OK · <10% thin
BTR development spreadYield-on-cost − market cap rate0 – 300 bps≥150 bps excellent · ≥50 bps OK · <50 bps negative
BTR capital recoveryCash returned at completion ÷ total cash invested0% – 100%≥100% full recycle · ≥70% partial · <70% stuck

Edge cases worth knowing

Related: Cap rate, NOI & default assumptions · DSCR & the 70% rule · Metric glossary