Platform · Glossary
Cash velocity.
Monthly net cashflow per unit, computed against the 3Y Estimate. The in-product card label and tooltip both read: "Velocity — Monthly net cashflow per unit using the 3Y Estimate™."
Cash velocity = (Annual net cashflow ÷ 12) ÷ Number of units
Example: a 4-unit property producing $48,000 annual net cashflow at the 3Y Estimate has $48,000 ÷ 12 ÷ 4 = $1,000 cash velocity per unit per month.
One of the three goal metrics
Cash velocity is one of the three goals you can target when running a 3Y analysis. The other two are cash-on-cash return and DSCR. Whichever you pick becomes the metric the 3Y Estimate is solved against — the report finds the price at which your chosen goal is exactly met.
What's a good cash velocity?
3Y's internal scoring band runs from $0/unit/month (score 0) to $150/unit/month (score 100). The reference target embedded in the engine is roughly 10% of local market rent — meaning if rents in the area are $1,500/month per unit, around $150/unit/month of net cashflow is a strong outcome. This is a 3Y benchmark, not a market consensus number; it reflects 3Y's view that two-figure-per-day cashflow per unit is what separates structurally cash-flowing deals from break-even ones.
How to use it as a goal
Cash velocity is the cleanest goal for an investor who measures success in monthly dollars rather than annualized returns. If you want $300/month of net cashflow per door and you're looking at a 4-plex, you're asking 3Y to solve for the price at which all four units together produce $1,200/month after every expense and the mortgage. That's the 3Y Estimate for that goal on that property.