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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:
- Normalize. Each metric is clamped onto a 0–1 scale over a fixed band chosen to span "worthless" to "exceptional" for that metric. For example, cash-on-cash return is normalized over 0%–20%: a 10% CoC scores 0.5, anything at or above 20% scores 1.0. For metrics where lower is better (break-even occupancy), the scale is inverted.
- Weight. Each normalized metric is multiplied by its rubric weight and summed.
- Renormalize on missing data. If a metric can't be computed (for example, the 10-year projection hasn't been run), it is skipped and the remaining weights are re-scaled — so scores stay comparable instead of being silently dragged down by missing inputs.
Verdict bands
| Score | Verdict |
|---|---|
| 75–100 | Strong |
| 55–74 | Solid |
| 35–54 | Thin |
| 0–34 | Weak |
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.
| Strategy | Rubric (relative weights) |
|---|---|
| Long-Term Rental | Cash-on-cash 25 · Cap rate 20 · DSCR 20 · 10-yr equity multiple 20 · Monthly cash flow 15 |
| Short-Term Rental | Cash-on-cash 25 · 10-yr equity multiple 25 · Break-even occupancy 20 · Cap rate 15 · DSCR 15 |
| Multifamily | Cap rate 25 · Cash-on-cash 20 · DSCR 20 · 10-yr equity multiple 20 · Monthly cash flow per unit 15 |
| BRRRR | Capital recovery at refi 30 · Cash-on-cash 20 · 10-yr equity multiple 20 · DSCR 15 · Cap rate 15 |
| Fix-n-Flip | After-tax annualized ROI 40 · After-tax margin 30 · Cushion vs ARV 15 · 70% rule check 15 |
| New Construction | BTS 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:
| Metric | Formula | Normalized over | Thresholds |
|---|---|---|---|
| Cash-on-cash return | Annual cash flow ÷ cash invested | 0% – 20% | ≥10% excellent · ≥5% OK · <5% thin |
| Cap rate | NOI ÷ purchase price | 0% – 12% | ≥8% excellent · ≥5% OK · <5% thin |
| DSCR | NOI ÷ annual debt service | 1.0 – 1.8 | ≥1.25 lender-friendly · ≥1.0 borderline · <1.0 negative |
| Break-even occupancy | (Fixed costs + debt service) ÷ gross potential revenue | 40% – 90% (lower is better) | ≤50% comfortable · ≤60% tight · >60% fragile |
| 10-yr equity multiple | Projected 10-yr equity ÷ cash invested | 0× – 5× | ≥3× excellent · ≥1.5× OK · <1.5× weak |
| Monthly cash flow | Annual 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 invested | 0% – 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 ÷ ARV | 0% – 25% | ≥10% excellent · ≥5% OK · <5% thin |
| Cushion vs ARV (flip) | (ARV − all-in cost) ÷ ARV | 0% – 30% | ≥20% comfortable · ≥10% OK · <10% tight |
| 70% rule check (flip) | (Purchase + rehab) ≤ 0.70 × ARV | pass / fail | see 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 margin | After-tax profit ÷ sale price | 0% – 25% | ≥15% excellent · ≥10% OK · <10% thin |
| BTR development spread | Yield-on-cost − market cap rate | 0 – 300 bps | ≥150 bps excellent · ≥50 bps OK · <50 bps negative |
| BTR capital recovery | Cash returned at completion ÷ total cash invested | 0% – 100% | ≥100% full recycle · ≥70% partial · <70% stuck |
Edge cases worth knowing
- Zero cash left in the deal. A perfected BRRRR that returns all invested cash makes the equity multiple infinite — the best possible outcome. It scores full marks on that metric, not "unknown."
- Comparing mixed strategies. When you compare deals of different strategies side by side, REIzer falls back to a universal rubric (CoC 30 · cap rate 20 · break-even occupancy 20 · equity multiple 20 · DSCR 10) and tells you the comparison is cross-strategy — scores across strategies are not directly comparable.
- Custom weight presets. Scoring also ships preset weight profiles — Balanced (the default), Cash-Flow Focused, Long-Term Equity, and Conservative/DSCR (lender-style) — and accepts fully custom weights.
Related: Cap rate, NOI & default assumptions · DSCR & the 70% rule · Metric glossary