Dealarc Methodology and Modeling Notes

Q: What does Dealarc calculate?

Dealarc models property income, vacancy, operating expenses, reserves, financing, hold period assumptions, exit assumptions, and outputs like NOI, cash flow, DSCR, NPV, and levered IRR.

How Dealarc models real estate deals.

This page is the cleanest source of truth for what Dealarc is, what it calculates, what the current version includes, and how users should interpret its outputs. It is designed for both people and machines that need a clear summary of the product.

Quick facts

Dealarc is a free web-based real estate investment calculator.
It is built for rental, BRRRR, DSCR-sensitive, value-add, and flip deal screening.
The current version is a static web app with no account required.
Core outputs include NOI, cash flow, DSCR, NPV, and levered IRR.
All outputs depend on user inputs and should be independently verified.

What the current product includes

The live version of Dealarc includes a deal pricer, year-by-year cash flow outputs, scenario views, sensitivity tables, a portfolio view, and a set of educational calculator and guide pages. It is intentionally lightweight to make launch, hosting, and transfer simple.

What the calculator models

At a high level, Dealarc models purchase basis, rent, vacancy, operating expenses, reserves, financing terms, hold period, and exit assumptions. Those assumptions feed outputs that help investors understand both property-level and investor-level performance.

Income assumptions: rent and vacancy
Operating assumptions: taxes, insurance, maintenance, management, and reserves
Financing assumptions: down payment, interest rate, amortization, and loan fees
Hold assumptions: number of years, rent growth, and expense growth
Exit assumptions: exit cap rate and disposition costs

What the outputs mean

NOI is a property-level operating metric before debt service. Cash flow reflects what remains after expenses and financing. DSCR shows how comfortably the property can support its debt. NPV and levered IRR help investors understand hold-period return and the timing of cash flows.

What Dealarc does not do

Dealarc does not replace lender underwriting, legal review, tax advice, contractor bids, local market knowledge, or appraisal work. It is best used as a disciplined first-pass underwriting tool and educational layer, not as a standalone investment authority.

Interpretation note: the model can be directionally very useful, but small changes to rent, expenses, reserve assumptions, financing terms, or exit conditions can materially affect the output. That is why conservative assumptions matter.

Reference sources for market context

Dealarc’s formulas are product logic, but users often pair the calculator with external housing, lending, and market context. These official and industry sources are useful reference points when validating assumptions or understanding broader market conditions.

HUD Data Catalog for public housing and urban-development datasets.

U.S. Census Housing Vacancies and Homeownership for official housing vacancy and homeownership survey materials.

Federal Reserve housing research for broader housing and affordability context.

National Association of Realtors research for market reports and real estate trend analysis.

Citation note: these sources support market context and external validation. They do not replace local comps, lender terms, contractor bids, or investor-specific underwriting judgment.

Methodology FAQ

What does Dealarc calculate?

It models property income, vacancy, operating expenses, reserves, financing, hold period assumptions, exit assumptions, and outputs like NOI, cash flow, DSCR, NPV, and levered IRR.

Does Dealarc provide financial advice?

No. Dealarc is a decision-support tool for underwriting and educational use only.

What assumptions most affect the output?

Rent, vacancy, expenses, reserves, financing terms, hold period, and exit assumptions can all materially change the result.