Rental Arbitrage and Short-Term Rental Calculator
LPSEstimate — Help, FAQs & Key Terms
Walkthrough Video
Tip: You’ll also see this calculator auto-filled when you open a property on our website.
Quick Start
- Choose Purchase or Lease Arbitrage.
- Enter the inputs (offer price or rent, terms, HOA/CAM, etc.).
- Click Calculate — we show Cap Rate, CoCR, GRM, NOI & cash flow.
- Positive cash flow? Enjoy the “You’re in the Money” animation & sound 🎉.
- Download your results as a PDF, or run Airbnb projections with ADR & occupancy.
FAQ
What is LPSEstimate?
LPSEstimate is our valuation & underwriting assistant. It blends nearby sold and active comps using a weighted model to estimate value and performance metrics for purchases and rentals (including Airbnb).
How are comps chosen?
We prioritize the closest, most similar properties, with time and distance decay, and micro-area matching (neighborhood/island cluster and ZIP). For luxury/ultra-luxury, we widen the radius if needed.
What if there aren’t enough comps?
We gradually relax filters (distance/size/price bands) and extend time windows. If necessary, we rely more on active comps with conservative weighting.
What is GRM?
Gross Rent Multiplier = Purchase Price ÷ Annual Gross Rent. Lower is generally better; GRM ignores expenses, so pair it with Cap Rate and Cash Flow for decisions.
Cap Rate vs. Cash-on-Cash Return?
Cap Rate = NOI ÷ Price (debt excluded). CoCR = (Cash Flow after debt) ÷ Cash Invested. Use both: Cap for asset yield; CoCR for equity efficiency.
Can I analyze Airbnb?
Yes. Switch to Airbnb inputs (ADR, occupancy, cleaning & platform fees). We compute projected net and cash flow under those assumptions.
Will the calculator auto-fill on property pages?
Yes. When viewing a property on our site, we auto-load address, list price, living area and more to jump-start your analysis.
Is this financial advice?
No. Results are illustrative and depend on inputs and market data quality. Always verify numbers and consult professionals.
Key Terms & Definitions
GRM — Gross Rent Multiplier
Price ÷ Annual Gross Rent. Screening metric (ignores expenses/debt).
Cap Rate
NOI ÷ Purchase Price. Unlevered yield of the asset.
NOI — Net Operating Income
Income after vacancy & operating expenses; excludes debt and taxes.
CoCR — Cash-on-Cash Return
(Annual Cash Flow after debt) ÷ Total Cash Invested.
ADR — Average Daily Rate
Average nightly price used for short-term rental projections.
Occupancy Rate
% of days rented in a period.
Price per SqFt (PPSF)
Price ÷ Living Area. Used for value benchmarking.
DOM — Days on Market
How long a listing has been active.
PITI
Monthly payment: Principal + Interest + Taxes + Insurance (and HOA if any).
DSCR
NOI ÷ Annual Debt Service. > 1.0 means income covers debt.
LTV — Loan-to-Value
Loan Amount ÷ Purchase Price (or Appraised Value).
CMA — Comparative Market Analysis
Pricing analysis based on similar nearby properties.
ARV — After-Repair Value
Estimated value of a property after renovations.
HOA / CAM
Association dues / Common-Area Maintenance fees.
EGI — Effective Gross Income
Gross Potential Rent + Other Income − Vacancy/Collection Loss.
Operating Expenses (OpEx)
Taxes, insurance, utilities, repairs, management, HOA/CAM, etc.
Breakeven Point
Months to recover cash invested from monthly cash flow.
Amortization
How loan principal is repaid over time through each payment.
Weighted Median (Comps)
Median with weights that favor recent, nearby, similar properties.
LPSEstimate Investment & Lease Arbitrage Calculator
Condo/HOA dues.
Charged to the guest (revenue).
Your cost to pay cleaners (expense).
Repairs/refreshes.
Purchase Price–
Down Payment–
Loan Amount–
PITI Payment–
NOI (Annual)–
Cash on Cash Return–
Cap Rate–
GRM–
Monthly Cash Flow–
Breakeven (Months)–
| Month | Payment | Principal | Interest | Balance |
|---|
Luxury Property Solutions, LLC.
2200 N Commerce Parkway, Suite 200
Weston, FL 33326
Phone: +1 (866) 577-5262
www.LPSLAMA.com