Methodology
How KZD Realty reaches its numbers
Every figure in KZD comes from a published formula applied to inputs you can see and change. Nothing is produced by an opaque model.
Investment metrics
All metrics are calculated by a deterministic engine from the assumptions shown in the Deal Analyzer: price, down payment, rate, term, rent, vacancy and each expense line.
| Net operating income (NOI) | Effective Gross Income − Operating Expenses |
| Cap rate | NOI / Purchase Price |
| Cash flow | NOI − Debt Service |
| Cash-on-cash return | Annual Cash Flow / Total Cash Invested |
| DSCR | NOI / Annual Debt Service |
| Debt yield | NOI / Loan Amount |
| Break-even occupancy | (Operating Expenses + Debt Service) / Gross Potential Income |
| Total cash required | Down Payment + Closing Costs + Points + Loan Fees + Rehab |
| Estimated equity | After-Repair Value − Purchase Price − Rehab |
KZD Deal Score
A 0–100 score built from seven components. Each is a simple rule, and the breakdown is shown on every scored property. A property with no rent figure receives no score.
| Component | Points | Rule |
|---|---|---|
| Cash Flow | 20 | Residential: monthly cash flow per unit, 0 pts at −$200 to full at +$400. Commercial: cash flow as a share of collected income, 0 pts at −5% to full at 25%. |
| DSCR | 15 | 0 pts at 0.90 to full at 1.40. All-cash scenarios receive full points. |
| Cap Rate | 15 | 0 pts at 4.0% to full at 8.5%. |
| Cash-on-Cash | 15 | 0 pts at 0% to full at 12%. |
| Equity | 15 | Discount of price to estimated as-is value (value estimate less rehab), 0 pts at 0% to full at 18%. |
| Rental Market | 10 | Half from metro vacancy (10% → 4%), half from year-over-year rent growth (−2% → +4%). When no real market statistics are connected, this component is a neutral 5 of 10. |
| Risk | 10 | Starts at full points; each high risk factor removes 15% and each moderate factor 5%. |
A high score means a property screens well under the selected assumptions. It is not a recommendation to buy.
KZD Buy Box match
Each criterion you set earns full credit when met, half credit when within 10%, and none otherwise. The match percentage is the weighted share of credit earned. A property outside your chosen markets or property types is never counted as a match, whatever its percentage. Deal Radar ranks by 50% Buy Box match, 30% Deal Score, 10% risk and 10% data confidence.
Rent and value estimates
Where comparable properties are available, the estimate is the median price or rent per square foot of the comparables multiplied by the subject's size, with the 25th and 75th percentiles as the low and high. You can exclude comparables or enter your own figure. In Texas, sale prices are not public record, so value comparables are list prices of comparable homes.
Data sources and their limits
- Listings come from a licensed data provider. Coverage is limited to certain cities and property types and is not the whole market.
- Property images are Google Street View unless a licensed listing photo is available. Street View may be out of date.
- Property taxes are the county record when available, otherwise a labelled estimate.
- Insurance is a rough estimate, not a quote. Flood and hazard data may be marked "not checked".
- Mortgage rates shown as "Example" are placeholders you should replace with a real quote.
- Risk and scoring use property, financial and hazard data only. No demographic information is used.
Inside the application, the Data Mode badge lists every data source with its current status.