Structure Optimizer

Compare Loan Structures

See how different loan structures impact your cash flow and returns side-by-side.

Purchase Price

What you're paying for the property — before rehab or closing costs.Down Payment %

The rest is the loan amount — this sets what you borrow on all three structures.Monthly Rent

Gross rent before expenses. Drives DSCR and cash flow on every card.FICO Score

Your credit score. A higher score typically qualifies for a lower rate.

30-Year Fixed

Note Rate6.375%

Monthly Payment (PI)$2,340

DSCR1.03x

Year 1 Cash-on-Cash (after expenses)-6.63%

After-Tax IRR (5yr)-15.10%

10-Year Interest Only

Note Rate6.750%

Monthly Payment (PI)$2,109

DSCR1.11x

Year 1 Cash-on-Cash (after expenses)-4.90%

After-Tax IRR (5yr)not modeled

5/6 ARM

Note Rate5.250%

Monthly Payment (PI)$2,071

DSCR1.12x

Year 1 Cash-on-Cash (after expenses)-4.61%

After-Tax IRR (5yr)not modeled

That IRR assumes the property is sold in year 5 for $491,847 (-1.6% against the $500,000 purchase price), because it values the exit at a 4.71% cap against this scenario's 3.96% entry cap — a 0.75% spread. No appreciation rate is assumed — any gap between the two prices comes from NOI growth outrunning that spread, not from an assumed appreciation rate. Change the exit cap and this number moves more than any other input on the page.

Five-year after-tax IRR is shown only for the fixed-rate structure — the interest-only and ARM cards read "not modeled" because this returns model doesn't simulate their payment changes over time.

Model assumptions

Texas single-family rental.
Property tax: 1.63% of purchase price annually.
Insurance: $4,388 annually.
HOA: $0 monthly.
Exit cap: a derived 4.71% — this scenario's 3.96% entry cap plus a documented spread, not a flat number we hardcode.
Hold period: 5 years.
Cash-on-cash uses Track 2's expense model: 7% vacancy, 8% management, 8% maintenance, and 5% CapEx.
Fixed-rate after-tax IRR uses a separate five-year schedule: 2% annual rent growth; 8% vacancy; 8% management; 5% maintenance; 2% turnover; 5%-of-EGI CapEx reserve; 0% fixed-expense growth; and 6% selling costs.
Its default tax profile uses 32% federal and 5% state tax rates; MFJ filing; $250,000 MAGI; 20% land allocation; no cost segregation; no 1031 exchange; and no real-estate-professional treatment.

Results are educational estimates, not a rate quote, approval, tax advice, or provider commitment.