PROPERTY DECISION GUIDE · JULY 9, 2026
Four underwriting metrics that keep a comparison grounded
Comparable metrics are most useful when every output can be traced to a property record and a saved set of price, income, cost and financing inputs.
Going-in cap rate
Cap rate compares year-one net operating income with the saved price. It gives the comparison a clear income-to-price relationship for each property.
Debt-service coverage ratio
DSCR compares net operating income with annual debt service. It helps the team see how the saved financing structure sits alongside the property’s operating assumptions.
Debt yield
Debt yield compares net operating income with the loan balance. It gives a direct view of the operating income supporting the saved debt amount.
Cash-on-cash return
Year-one cash-on-cash compares annual operating cash with the initial equity recorded in the case. Use it beside the other metrics rather than in isolation.