Platform · Glossary
Projected ROI path.
The Projected ROI path is a supporting report projection that shows how modeled gains may build over time through:
- cumulative cash flow;
- principal paydown; and
- potential appreciation.
The report also combines those components into a projected return on the investor’s initial cash invested.
What the report shows
The section provides separate views for cash flow, appreciation, and total projected ROI. It highlights modeled milestones at years 5, 7, and 10 so the investor can compare how the potential capital position changes over time.
The milestone table separates:
- loan paydown;
- appreciation;
- cumulative cash flow; and
- projected ROI.
Separating the components matters because a projected gain may come from different sources. A property with modest cash flow may show more of its modeled outcome through loan paydown or appreciation, while another property may rely more heavily on operating cash flow.
Assumptions behind the path
The projection uses the deal’s financing and operating assumptions together with modeled rent and home-price growth. The report uses recency-adjusted local growth assumptions, capped by their longer-term trends — HUD-based context for rent and FHFA-based context for home prices where available.
Changing rent growth, home-price growth, expenses, financing, vacancy, or the purchase price can materially change the projected path.
Hold, refinance, and sell are possible paths
The 5-, 7-, and 10-year milestones can help frame possible future hold, refinance, or sale decisions. They do not tell the investor which path to choose or when to act.
Modeled equity does not guarantee accessible cash. A refinance still depends on a future appraisal, lender requirements, interest rates, loan-to-value limits, DSCR, borrower qualification, and closing costs. A sale still depends on future market conditions, transaction costs, taxes, property condition, and a willing buyer.
What it is not
The Projected ROI path is not a promise of appreciation, rent growth, refinancing, sale proceeds, or investment performance. It is an assumption-based scenario intended to make the long-term mechanics of the deal easier to understand and pressure-test.