Velocity of Money

Velocity Score

Equity Creationi

0 / 40

Speed of Capital (IRR)i

0 / 25

Tax Efficiencyi

0 / 15

Cash Flow (CoC)i

0 / 20

🟢 Equity Creation (max 40) --/40

Equity Multiple = (ARV after appreciation − remaining loan) ÷ equity invested. Measures only wealth built — not cash flow, not tax benefits.

Scale: 3x=40pts · 2x=32pts · 1.5x=24pts · 1x=14pts

🔵 Speed of Capital / IRR (max 25) --/25

IRR (Internal Rate of Return) — time-weighted annualized return on all cash flows including exit proceeds. Does not include tax benefits.

Scale: 20%+=25pts · 15%=21pts · 10%=14pts · 5%=7pts

🟣 Tax Efficiency (max 15) --/15

Land = 20% of purchase price (not depreciable). Depreciable basis = 80%. Of that: 50% = personal property at 100% bonus dep in yr1; 50% = structure on straight-line ÷ 27.5yr. Renovation budget = 100% bonus dep in yr1. Only takes as much depreciation each year as needed to bring your effective tax rate to 10% — remainder carries forward to next year.

🟠 Cash Flow / CoC (max 20) --/20

Cash-on-Cash = Annual cash flow (NOI − debt service) ÷ total equity invested. DSCR shown for reference but does not drive the score.

Scale: 30%+=20pts · 15%=15pts · 10%=10pts · 5%=5pts. Penalty: −0.5pt/pp below 15%.

⚠️ Penalties -0

Friction: high interest rate (≥10%, −1.5), high reno (>20% of price, −1.5), negative cash flow (−2). Metric: CoC below 15% (−0.5/pp), IRR below 18% (−0.5/pp).

Purchase Price Recommendationsi

Target MOIC: --x | Current MOIC at listed price: --x

Stretch Price----x Equity Multiple

Max Price----x Equity Multiple

Ideal Price----x Equity Multiple

Listed Price----x Equity Multiple

How to Improve This Deal

#1 --

Analyze a deal to see your top improvement levers

+--x Equity Multiple

#2 --

Each lever shows quantified impact on your returns

+--x Equity Multiple

#3 --

Ranked by largest delta to your equity multiple

+--x Equity Multiple

Total Capital Required

Total Capital Needed

Pro-Forma Summaryi

Return Attributioni (5-Year)

Equity Creation -- — --

Cash Flow -- — --

Tax Benefits -- — --

Debt Paydown -- — --

Equity Multiple --

How are these calculated?

Cash Flow: Annual revenue (ADR × occupancy × 365 × keys) minus operating expenses minus annual debt service, summed over the hold period.

Equity Creation: Year 1 includes forced appreciation (ARV minus total cost basis). Subsequent years compound at your annual appreciation rate on the ARV.

Tax Benefits: 50% of structure value (purchase price × 80%) plus 100% of renovation budget can be bonus depreciated in Year 1. Remaining structure depreciates over 27.5 years (STR) or 39 years (hotel). Capped at your household income. Applied at a flat 30% tax rate.

Debt Paydown: The principal portion of your mortgage payments that builds equity over the hold period.

Equity Multiple: Total return (cash flow + equity at exit + tax benefits + debt paydown − initial equity) divided by total equity invested.

IRR: Annualized return rate that makes the net present value of all cash flows equal zero. Accounts for timing of returns.

Sensitivity Analysisi

Simulate ADR

+0%

Current ADR

Simulate Occupancy

+0pp

Current occupancy

Simulated Result

--x Equity Multiple

Equity Multiple at varying ADR × Occupancy

Import Property Details

Velocity Score

Purchase Price Recommendationsi

How to Improve This Deal

Total Capital Required

Pro-Forma Summaryi

Return Attributioni (5-Year)

Sensitivity Analysisi

Capital Stack Recommendations

Import Property Details

Velocity Score

Purchase Price Recommendationsi

How to Improve This Deal

Total Capital Required

Pro-Forma Summaryi

Return Attributioni (5-Year)

Sensitivity Analysisi

Capital Stack Recommendations

Create your account

Choose Your Plan

Monthly

Annual

Past Reports

Manage Subscription