# Deal Ledger What It Does & How to Use It

Deal Ledger takes a rental property's numbers (or just an address) and tells you three things in under a minute:

1. **Should you pursue this deal?** cash flow, cap rate, cash-on-cash return, DSCR, and a plain-English verdict

2. **What's the most you should offer?** enter your target return, and it calculates the maximum price that still hits your numbers, checked against real market comps

3. **Is the price fair?** auto-pulled comps show you how the asking price compares to what's actually selling nearby

No spreadsheets. No manual cap rate math. Just the numbers you need to make a fast, confident call.

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## What to fill out, based on what you're trying to do

|---|---|---|---|

| **"I found a listing is this a good deal?"** | Purchase price, down payment %, interest rate, loan term, monthly rent, and rough expense estimates (taxes, insurance, vacancy %) | **Run the analysis** | Cash flow, cap rate, cash-on-cash return, DSCR, break-even occupancy, and a "Clear to Proceed / Proceed with Caution / Do Not Proceed" verdict with a plain-English explanation |

| **"What's the max I should offer on this property?"** | Rent and expense fields (same as above, but leave Purchase Price blank or ignore it), plus your **target cash-on-cash return** and/or **target DSCR** in the Optional Tools section | **Calculate max offer** | The highest price you can pay and still hit your target return checked against comps if you've looked them up, so you don't overpay relative to market value either |

| **"I don't know the comps or square footage for this address"** | Just the property address | **Look up comps** | Auto-fills subject property square footage and 3 nearby comparable sales, plus an estimated market value no manual research needed |

| **"Is this asking price in line with the market?"** | Run a comps lookup first, then fill in Purchase Price and run the analysis | **Run the analysis** | The "Value vs. Comps" metric shows exactly how far above or below market the asking price sits |

| **"I want to negotiate how much room do I have?"** | Run the MAO calculator first (target return), then enter your actual offer price and run the full analysis | **Run the analysis** (after MAO) | A direct comparison: "Your offer is $X below/above your calculated max offer," plus the AI writeup will explicitly discuss your negotiating room |

| **"I want a record I can share with a partner or lender"** | Complete a full analysis first | **Download PDF report** | A clean, branded one-page report with the verdict, all metrics, and the AI summary ready to save, print, or send |

| **"I want to come back to this deal later"** | Complete a full analysis first, and be signed in | **Save this deal** | Stores the deal in your account; click any entry under "Saved Deals" later to reload the full inputs, metrics, and verdict |

| **"I'm looking at a property in Texas, Utah, or another non-disclosure state"** | Just run a comps lookup as usual | (automatic) | A note will appear warning that sale prices aren't publicly recorded in that state, so comps should be cross-checked against local MLS data |

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## Quick field glossary (for people new to these terms)

| Term | What it means |

|---|---|

| **Cap Rate** | Annual income purchase price. Higher generally means better income relative to what you paid but ignores financing. |

| **Cash-on-Cash Return** | Annual cash flow actual cash you invested (down payment + closing + rehab). This accounts for financing, unlike cap rate. |

| **DSCR** | Debt Service Coverage Ratio how many times over the property's income covers the mortgage payment. Below 1.0 means it doesn't cover the loan at all. Lenders typically want 1.2+. |

| **Break-Even Occupancy** | The minimum occupancy rate needed to cover all costs. Lower is safer it means the property can handle more vacancy before losing money. |

| **MAO (Maximum Allowed Offer)** | The highest price you can pay and still hit your target return, factoring in your actual expenses and financing terms. |

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## A typical full workflow

1. Find a listing → note the price, address, and estimated rent

2. **Look up comps** using the address (auto-fills square footage and 3 comparable sales)

3. Fill in your financing assumptions (down payment %, rate, term) and operating costs (taxes, insurance, vacancy %)

4. **Calculate max offer** using your target return see your ceiling, checked against the comps

5. Enter the actual listing/offer price and **Run the analysis** see the full verdict and how your offer compares to your max

6. **Save the deal** and/or **download the PDF** to reference later or share with a partner

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*This tool provides estimates for planning purposes only not financial, legal, or investment advice. Always verify rent, comps, and expense assumptions independently before making an offer.*