Underwriting Tools
Practical calculators and market benchmarks used by the Megas Holdings team when evaluating acquisition opportunities.
Back to ResourcesCap Rate Calculator
Cap Rate
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Cap Rate = NOI ÷ Purchase Price × 100
Cash-on-Cash Return
Cash-on-Cash Return
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CoC Return = Annual Cash Flow ÷ Total Cash Invested × 100
Debt Service Coverage Ratio (DSCR)
DSCR
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DSCR = NOI ÷ Annual Debt Service. Most lenders require 1.20x or higher.
Market Benchmarks
| Metric | Typical Range | Notes |
|---|---|---|
| Cap Rate (Self-Storage) | 5.0% – 7.5% | Secondary/tertiary markets trend higher |
| Cap Rate (Multifamily) | 4.5% – 6.5% | Varies by market class |
| DSCR Minimum (Most Lenders) | 1.20x | Some bridge lenders accept 1.10x |
| Cash-on-Cash Target | 7% – 12% | Varies by strategy and leverage |
| LTV (Acquisition) | 65% – 75% | Conventional; bridge may go higher |
| Vacancy Assumption | 5% – 10% | Stabilized assets |
Self-Storage Underwriting
Development and acquisition analysis tools for self-storage opportunities.
Yield on Cost
Yield on Cost
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Yield on Cost = Stabilized NOI ÷ Total Project Cost × 100. Developers typically target 150–200 basis points above market cap rates.
Stabilized Value
Stabilized Value
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Stabilized Value = NOI ÷ Cap Rate. Use the prevailing market cap rate for comparable self-storage assets in the target market.
Rent Projection
Gross Potential Rent (monthly)
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Effective Gross Income (monthly)
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Effective Gross Income (annual)
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Gross Potential Rent assumes 100% occupancy. Effective Gross Income applies your occupancy assumption.
Occupancy Breakeven
Breakeven Occupancy
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Breakeven Occupancy = (Expenses + Debt Service) ÷ Gross Potential Rent. Most lenders want to see breakeven below 80%.
These tools are provided for informational purposes only and do not constitute financial or investment advice. Always consult a qualified professional before making investment decisions.
