How Prudentia builds a rental-property screen
Prudentia keeps four layers distinct: your inputs, provider-supplied rental evidence, deterministic financial calculations, and AI-assisted interpretation. Here is what each layer can and cannot tell you.
Your inputs and assumptions
The screen begins with a property address and purchase price. You can adjust the assumptions used in the financial model, and the signed-in analysis shows the exact values applied to that result.
Prudentia's starting values are editable inputs, not local market facts, financing quotes, or recommendations. That is why this public page explains the categories without publishing a supposedly universal set of defaults.
Provider-supplied rental evidence
Prudentia receives the subject property's estimated long-term rent, estimate range, available property attributes, and comparable rental listings from a specialized property-data provider.
A result can show up to five comps and available context such as listing status, distance, age, and similarity. Coverage and fields vary by property. Treat the estimate and comps as evidence to investigate, not as a guarantee of achievable rent.
Financial calculations
These metrics are calculated from the displayed price, rent, and assumptions by versioned application code. They are not generated or altered by AI.
| Metric | Definition |
|---|---|
| Annual scheduled rent | Monthly estimated rent × 12 |
| Effective gross income | Annual scheduled rent × (1 − vacancy rate) |
| Operating expenses | Effective gross income × operating-expense ratio |
| Net operating income (NOI) | Effective gross income − operating expenses |
| Cap rate | NOI ÷ purchase price |
| Debt service | Amortizing loan payment from price, down payment, interest rate, and term |
| Annual cash flow | NOI − annual debt service |
| Simplified cash-on-cash return | Annual cash flow ÷ down payment (closing costs, initial rehab, and reserves excluded) |
| Gross rent multiplier (GRM) | Purchase price ÷ annual scheduled rent |
| Debt-service coverage ratio (DSCR) | NOI ÷ annual debt service |
| Breakeven vacancy | Vacancy rate at which modeled NOI equals annual debt service |
AI-assisted interpretation
AI helps summarize the supplied property data, calculated metrics, and assumptions. It does not assign the displayed financial metrics or a decision-grade investment score. In the deal-list workflow, it also helps extract structured property details for you to review before analysis.
The application validates the shape of a new AI response and pins numeric rent to the provider-supplied input. An AI summary can still be wrong or overstate what the evidence supports, so check it against the underlying figures and evidence before acting.
Follow one set of assumptions through the model
This is a teaching example generated with the same calculation code used by Prudentia. It is not a property, customer result, market forecast, or financing offer.
$30,000 × (1 − 7%)
$27,900 − $10,602
$1,216 monthly payment × 12
NOI − annual debt service
Two simple stress cases
| Case | Annual cash flow | CoC return | DSCR |
|---|---|---|---|
| Base assumptions | $2,705 | 4.33% | 1.19 |
| Rent falls to $2,250/month | $975 | 1.56% | 1.07 |
| Expense ratio rises to 45% | $752 | 1.20% | 1.05 |
Neither stress case adds separately verified taxes, insurance, repairs, capital work, closing costs, initial rehab, or reserves. Those costs still need quotes, records, inspections, and deal-specific review.
Built to be inspectable, not treated as a black box
Prudentia's separation of property operations, NOI, financing, debt service, cap rate, and DSCR follows established underwriting definitions. For orientation, see the OCC Commercial Real Estate Lending handbook. Rental evidence should be checked against leases and comparable-rent support; see Fannie Mae's rental-income guidance. Expense categories vary by deal; IRS Publication 527 is one useful inventory, not a substitute for tax advice.
Those sources inform terminology and diligence discipline; they do not certify this model, set universal investor thresholds, or make a residential first-pass screen equivalent to a lender appraisal or full underwriting.
Use the screen to decide what to investigate next.
A promising first pass is a reason to continue diligence. It is not proof that a property will perform.