# REIzer — full methodology (llms-full.txt)

> Real estate investment analysis platform (reizer.io). This file flattens the
> full methodology documentation (https://reizer.io/docs/) into one plain-text
> document for AI agents and LLM tooling. Canonical per-topic pages are linked
> throughout; app pages live at https://reizer.io/.

## What REIzer is

REIzer underwrites real-estate deals across six strategies from a property
address plus the investor's assumptions. All analysis math runs on REIzer's
own engine on the inputs provided. Optional paid features pull property
records, sale/rent comparables, and short-term-rental market data from
licensed data providers; those results are labeled with source and freshness.

Strategies and what each reports:

1. Long-Term Rental (buy & hold): monthly + annual cash flow, cash-on-cash,
   cap rate, DSCR, gross yield, 30-year wealth projection, rent comps.
2. Short-Term Rental: ADR x occupancy x 365 revenue model, break-even
   occupancy, break-even ADR, STR market comps.
3. BRRRR: capital recovery at refinance, cash left in deal, minimum ARV,
   post-refi cash flow and DSCR.
4. Fix-n-Flip: after-tax profit, after-tax margin, annualized ROI, break-even
   cushion, 70% rule check.
5. New Construction: build-to-sell (profit, margin, annualized ROI) and
   build-to-rent (yield-on-cost, development spread, capital recovery) exits.
6. Multifamily: rent-roll driven — in-place vs stabilized NOI, economic
   occupancy, EGI, NOI lift, stabilized value, value created, price per unit.

Plus: Portfolio Tracker (equity/cash-flow/paydown across owned properties)
and Market Trends (US gross-yield heatmap by state, county, ZIP).

## The scoring engine (https://reizer.io/docs/scoring/)

Every analyzed deal gets a 0-100 score from a weighted rubric:

1. Normalize: each metric is clamped to 0-1 over a fixed band spanning
   "worthless" to "exceptional" (inverted where lower is better).
2. Weight: normalized metrics are multiplied by rubric weights and summed.
3. Renormalize on missing data: uncomputable metrics (e.g. projection not
   run) are skipped and remaining weights re-scale, keeping scores comparable.

Verdict bands: 75-100 Strong, 55-74 Solid, 35-54 Thin, 0-34 Weak.

Strategy-aware rubrics (relative weights, auto-normalized). Each strategy is
graded only on metrics that apply to it, so equal scores mean "equally strong
for its type":

- 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. (Pure build-to-sell
  projects skip the BTR metrics without penalty.)

Metric formulas, normalization bands, and thresholds:

- Cash-on-cash = annual cash flow / cash invested. Band 0-20%.
  >=10% excellent, >=5% OK, <5% thin.
- Cap rate = NOI / purchase price. Band 0-12%. >=8% excellent, >=5% OK.
- DSCR = NOI / annual debt service. Band 1.0-1.8. >=1.25 lender-friendly,
  >=1.0 borderline, <1.0 negative.
- Break-even occupancy = (fixed costs + debt service) / gross potential
  revenue. Band 40-90%, lower better. <=50% comfortable, <=60% tight,
  >60% fragile.
- 10-yr equity multiple = projected 10-yr equity / cash invested. Band 0-5x.
  >=3x excellent, >=1.5x OK. Zero cash left in deal (perfected BRRRR) makes
  the multiple infinite and scores full marks.
- Monthly cash flow = annual cash flow / 12, per unit for multifamily.
  Band $0-$500/mo/unit. >=$300 strong, >=0 thin, <0 bleeding.
- Capital recovery at refi (BRRRR) = cash returned at refi / total cash
  invested. Band 0-100%. >=100% full recycle, >=70% partial, <70% stuck.
- After-tax annualized ROI (flip) = (after-tax profit / cash invested) x
  (12 / hold months). Band 0-50%. >=30% excellent, >=15% OK.
- After-tax margin (flip) = after-tax profit / ARV. Band 0-25%.
  >=10% excellent, >=5% OK.
- Cushion vs ARV (flip) = (ARV - all-in cost) / ARV. Band 0-30%.
  >=20% comfortable, >=10% OK.
- 70% rule check (flip): pass if (purchase + rehab) <= 0.70 x ARV.
- BTS annualized ROI (new construction) = (after-tax profit / cash invested)
  x (12 / total months). Band 0-40%. >=20% excellent, >=10% OK.
- BTS after-tax margin = after-tax profit / sale price. Band 0-25%.
  >=15% excellent, >=10% OK.
- BTR development spread = yield-on-cost - market cap rate. Band 0-300 bps.
  >=150 bps excellent, >=50 bps OK.
- BTR capital recovery = cash returned at completion / total cash invested.
  Band 0-100%. Same thresholds as BRRRR capital recovery.

Mixed-strategy comparisons fall back to a universal rubric (CoC 30, cap rate
20, break-even occupancy 20, equity multiple 20, DSCR 10) and are flagged as
cross-strategy. Preset weight profiles: Balanced (default), Cash-Flow
Focused, Long-Term Equity, Conservative/DSCR. Custom weights supported.

## DSCR (https://reizer.io/docs/dscr/)

DSCR = NOI / annual debt service. NOI is income minus operating expenses
(taxes, insurance, vacancy, maintenance, capex reserves, management) BEFORE
the mortgage; annual debt service is the full yearly principal + interest.
Readings: >=1.25 lender-friendly (most DSCR lenders underwrite at 1.20-1.25
minimum), 1.00-1.24 borderline, <1.00 negative coverage (owner feeds the
deal monthly). DSCR ignores down payment size on purpose — it exposes how
much the deal depends on equity subsidizing the loan.

REIzer reports DSCR on every rental strategy, weights it in scoring, stress
tests it as "max rate" (highest interest rate keeping DSCR at 1.20), and
accepts it as a MAO solver target.

## The 70% rule (https://reizer.io/docs/dscr/)

Maximum purchase price = 0.70 x ARV - rehab cost; equivalently
(purchase + rehab) <= 0.70 x ARV. ARV = after-repair value from comparable
sales. The 30% gap must absorb selling costs (typically 6-10%), holding and
financing costs (often 5-10% on hard money), and profit margin. REIzer runs
it as a pass/fail screen (15% of the flip rubric) alongside the precise
after-tax underwrite.

## Cap rate, NOI & default assumptions (https://reizer.io/docs/cap-rate/)

NOI = effective gross income - operating expenses, where EGI = scheduled
rent - vacancy/credit loss + other income, and operating expenses include
taxes, insurance, maintenance, capex reserves, management, utilities/HOA
where applicable. Debt never enters NOI. Cap rate = NOI / purchase price.

Variants: in-place cap rate (today's actual rents), stabilized value =
stabilized NOI / exit cap rate, exit cap rate = the cap rate a future buyer
pays at sale (higher exit cap = lower sale value = the conservative dial).

Yield-on-cost = stabilized NOI / total all-in cost.
Development spread = yield-on-cost - market cap rate. Positive spread means
building the asset costs less than buying it stabilized; 100+ bps is the
conventional threshold to justify build risk, >=150 bps scores excellent.

Default operating assumptions filled when an input is left blank (always
labeled as estimates in results, never silently):

- Insurance: ~0.6% of property value per year
- Vacancy: 5% of gross rent
- Maintenance: 5% of gross rent
- CapEx reserves: 5% of gross rent
- Property management: 8% of gross rent

REIzer never presents a score computed on zero operating costs or zero
income.

## MAO solver (https://reizer.io/docs/mao/)

Maximum Allowable Offer: the highest price that still meets every target the
investor sets (minimum CoC, DSCR, cap rate, monthly cash flow, or
strategy-specific targets like capital recovery / profit margin). For each
target, REIzer binary-searches the price space ($10K-$50M), re-running the
full analyzer at each candidate price, to find that target's price ceiling.
The MAO is the lowest ceiling; the target producing it is the "binding
constraint." Because the solver runs the real engine, results are consistent
with hand-entered analyses (closing costs, vacancy adjustments,
principal/interest splits, refi mechanics included). If no price satisfies a
target, the failed targets are named; if every price works, the user is
prompted to tighten targets until a binding maximum appears.

## Glossary (https://reizer.io/docs/glossary/)

Selected definitions (full list on the page):

- Monthly cash flow: pocket money each month after every operating expense
  and the mortgage payment.
- Cash-on-cash (CoC): annual pre-tax cash flow / cash invested (down +
  closing + rehab).
- Cap rate: NOI / purchase price — unleveraged yield.
- NOI: all rental income minus operating expenses, before the mortgage.
- DSCR: NOI / annual mortgage payment; lenders typically want 1.20+.
- GRM: price / annual gross rent.
- Break-even occupancy: occupancy where income just covers all expenses +
  mortgage.
- ARV: after-repair value from comparable sales.
- Capital recovery: share of invested capital returned at refinance.
- Economic occupancy: rent collected / gross potential rent (captures
  loss-to-lease, unlike physical occupancy).
- EGI: scheduled rent - vacancy/credit loss + other income.
- Yield-on-cost: stabilized NOI / total all-in cost.
- Development spread: yield-on-cost - market cap rate.
- Exit cap rate: cap rate assumed for a future buyer at sale.
- ADR: average daily (nightly) rate of a short-term rental.
- Break-even ADR: lowest nightly rate covering all expenses + mortgage.
- 10-yr equity: projected value minus loan balance after 10 years.
- Total return: cash flow collected + equity gained, relative to cash
  invested.

## API & MCP (https://reizer.io/docs/api/)

Status: LIVE in beta (free, no key, no account) for analysis:

  POST https://reizer.io/api/v1/analyze
    body: { "strategy": "ltr|str|brrr|multifamily|flip|newc",
            "inputs": { ...engine camelCase keys, rates as FRACTIONS } }
    returns: score (0-100), verdict, metrics, stress scenarios,
    break-even thresholds, deterministic summary, report_url (a
    shareable report page at reizer.io/report.html?id=... that lives
    30 days — give this link to the user), and
    assumptions.estimated_fields (which omitted inputs were filled
    with documented defaults).
  GET https://reizer.io/api/v1/strategies
    returns each strategy's required + optional inputs.
  POST https://reizer.io/api/v1/best-use
    body: { "inputs": { ...one property's inputs } } — runs every
    strategy the inputs qualify for and ranks them by score.
  POST https://reizer.io/api/v1/mao
    body: { "strategy", "inputs" (no price needed), "targets"? } —
    reverse-solves the maximum purchase price meeting every return
    target and names the binding constraint.

Rate limits: 5 analyses/min and 15/day per IP (HTTP 429 with
retry_after). Anonymous calls cannot reach any paid data vendor by
construction.

MCP server (LIVE): https://reizer.io/mcp — stateless streamable-HTTP.
Add to Claude Code: `claude mcp add --transport http reizer
https://reizer.io/mcp`, or any MCP host config:
{"mcpServers":{"reizer":{"type":"http","url":"https://reizer.io/mcp"}}}
Free tools: analyze_deal, best_use, solve_max_offer, list_strategies.
pull_comps and str_market_data are listed but need the upcoming keyed
tier (Investor+). Same per-IP rate budget as the REST API.

Still in development: keyed metered endpoints for licensed data
(comps, records, STR market, Market Trends) tied to paid REIzer
accounts. Early access: https://reizer.io/contact.html

## Links

- App: https://reizer.io/
- Docs: https://reizer.io/docs/
- Pricing: https://reizer.io/pricing.html
- FAQ: https://reizer.io/faq.html
- How it works: https://reizer.io/how-it-works.html
- Index file: https://reizer.io/llms.txt