Property break-even analysis

I would love it if, on the Stessa Dashboard, there was a chart that would help me determine the break-even point on a property.

For example, if I purchased a property and it was mortgaged, I would like to see my current all-in costs (down payment, interest, maintenance, etc). I believe all of this information is currently in Stessa, it would just be nice to have it calculated for me.

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@mkcrealestatellc Sure. When you say “break even” do you mean the point at which rental income equals total expenses in a given month? If so, your down payment amount isn’t really a factor other than to the extent it influences your monthly debt service amount.

Your total projected monthly expenses number is available on the Properties detail page under the “Pro Forma” column on the “Monthly Expenses” card, as detailed here:

To navigate to this page, log into Stessa, click “Properties” in the left navigation bar, click the thumbnail photo for the property in question, then scroll down and you’ll find “Monthly Expenses” on the right side.

If this isn’t quite what you’re looking for, let us know and we’ll get back to you.

Thanks for getting back to me & sorry for the confusion. I was thinking more along the lines of the property as a whole for example:

Item Cost
Purchase Price $100,000
Lifetime interest paid $50,000
Lifetime Repairs & Maintenance $25,000
… $
Lifetime Costs $175,000

Therefore if we want to sell, we would need to sell for $175,000 + Closing Costs in order to break even.

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@mkcrealestatellc Got it, thanks for the clarification.

So, how do you factor in cash flow (negative or positive) that accrued during the hold period? Do you ignore it for the purposes of this analysis?

Some properties kick out plenty of cash flow but simply don’t appreciate much, which can make it difficult to ever get to a “break-even” sale price when it’s calculated this way.

Either way, if other investors on Stessa would like to see this feature added, please click the heart icon near the bottom of the post to vote for it!

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