The After-Tax Reality of Your Multifamily Debt.
Most financing models stop at the basic interest rate. This interactive model calculates the real-world metrics that actually dictate your portfolio's returns: true after-tax cash flow, interest-only cost-benefits, and the opportunity cost drag of loan fees and rate buy-downs. Run your scenario in 90 seconds to see if you are leaving money on the table.
Free · No signup required · ~90 seconds
Benchmark Case Study · Twin Palms (24 units)
Benchmark · UST 7Y @ 4.20% · IO spread 225 bps · Amort spread 215 bps
Demo Scenario: Input your asset data on the left to instantly replace this matrix with your custom deal metrics.
3-Way Comparison Matrix
| Metric | Current Loan | Interest Only | Amortized |
|---|---|---|---|
| Loan Terms & Payment | |||
| Interest Rate | 5.52% | 5.75% * | 5.75% * |
| Annual Debt Service | $115,560 | $109,250 | $133,055 |
| Monthly Payment | $9,630 | $9,104 | $11,088 |
| DSCR | 1.60x | 1.69x | 1.39x |
| Operating Cash Flow (Annual) | |||
| Pre-Tax Cash Flow | $69,440 | $75,750 | $51,945 |
| Tax Shelter / (Tax Liability) | ($11,412) | ($4,388) | ($4,388) |
| After-Tax Cash Flow | $58,028 | $71,362 | $47,557 |
| Transaction & Closing Costs | |||
| Cash-Out Proceeds | $0 | $275,000 | $275,000 |
| Upfront Financed Costs / Points | — | $72,000 | $72,000 |
| Total Wealth Accumulation Potential (7y) | |||
| Cumulative ATCF | $406,193 | $517,195 | $350,562 |
| Equity Build | $181,192 | $0 | $204,563 |
| Reinvestment Gain | $0 | $74,810 | $45,012 |
| = Total Wealth Δ | $587,384 | $592,005 | $600,137 |
| Net Buy-Down Benefit | — | $67,389 | $52,387 |
Cumulative ATCF vs Total Wealth Delta
Scaled to 7-year investment horizon
How DSCR Works on an Interest-Only Loan
Interest-only loans change the DSCR math in one important way: debt service is pure interest with no principal amortization, so the same loan amount produces a mechanically higher DSCR while the IO period is in effect. The formula itself doesn't change — only the debt-service input does.
- Loan amount
- $6,000,000
- IO rate
- 6.50%
- Annual debt service
- $6,000,000 × 6.50% = $390,000
- NOI
- $500,000
- DSCR
- $500,000 ÷ $390,000 = 1.28×
Institutional lenders typically require DSCR ≥ 1.20×. The example clears the bar. If NOI dropped to $450,000, DSCR would compress to 1.15× and the deal would likely be re-traded or declined.
One caveat: when the IO period converts to amortizing, monthly debt service jumps and DSCR compresses meaningfully. Underwrite to the amortizing payment, not the IO teaser — that's the coverage your lender will actually test at refinance or sale.
An Open Letter to Multi-Family Operators
Dear Fellow Investor,
As multi-family operators, we are trained to hunt down every last dollar of efficiency on the property level. We audit utility bills, push for RUBS compliance, and optimize turn costs.
Yet, when it comes to the single largest line item on the entire P&L—the debt structure—many of us evaluate multi-million dollar refinance quotes using standard interest rate calculators.
When you look at a term sheet, that quiet question always sits in the back of your mind: Am I missing something important here?
The answer is usually yes, because standard calculations are fundamentally blind to the commercial tax shield. They don't model how your asset's depreciation offsets incoming cash flow liabilities. They ignore the linear amortization of upfront loan fees over your hold period. They completely miss the actual opportunity cost drag of financing points out of your gross proceeds, and they leave you guessing as to whether an expensive interest rate buy-down actually increases your net wealth or just lines the bank's pockets.
We built WeLandlord to solve this exact blind spot in our own multi-family portfolios.
This software treats your debt restructure like an institutional capital allocation decision. It strips away the bank's marketing and uncovers the only metric that actually matters: your true, after-tax wealth generation potential over your chosen investment horizon.
No fluff, no hidden agendas. Just a clean sandbox built by fellow GPs to ensure you aren't leaving money on the table.
Sincerely,
The WeLandlord Team
Multi-Family General Partners & Allocators