Every month of the hold, derived from the leases
Rent and recoveries per suite, month by month, with vacancy and credit loss above the NOI line and reserves and leasing costs below it — so the result reconciles instead of merely looking plausible.
An annual model cannot tell November from January
Leases do not respect fiscal years. Roll a lease in November and an annual model books the same number it would have booked for a February expiry — which is the difference between a comfortable year and a painful one.
- Events land in their own monthAn expiry, a downtime gap, a free-rent period, a TI cheque and a rent step each occur when they occur, not spread across a year.
- The worst month is a number, not a worryA hold that averages comfortably can still have a quarter that does not cover debt service. Monthly modelling is the only way that shows up.
- Stabilisation has a dateThe month the last vacant suite is re-let and the income settles is a fact the model can name rather than an assumption you carry in your head.
Riverside Industrial — Cash Flow Projection
7-year projection | 84 months | 6-Year Hold
In-Place NOI
$306,000
Active leases
Combined Rent
$1,942,000
In-place + projected
Combined NOI
$1,868,000
Full hold period
Total Debt Service
$1,129,000
6-year total
Combined Cash Flow
$739,000
In-place + projected
Deal Performance Combined cash flow
- Worst CF
- Stabilized
- Peak NOI
- Best Exit
Peak NOI
$28,473 /mo
Feb 2032
Worst Cash Flow
$3,223 /mo
Oct 2027
Stabilization
May 2029
All suites re-leased
Best Exit
$2,892,000
Feb 2032 · 215% ROE
The NOI line is a valuation decision disguised as bookkeeping
Recoveries, vacancy and credit loss belong above the NOI line. Replacement reserves, tenant improvements, leasing commissions and capital items belong below it.
This is not an accounting preference, it is the price. NOI multiplied by a cap rate is what the income is worth, so a reserve booked above the line lowers the valuation and a recurring cost pushed below it raises one that is not there. At a 7% cap, every $10,000 on the wrong side moves supportable value by roughly $143,000.
DealWise places them by category rather than by where a line happened to sit on the seller’s statement — and the deal audit checks the ones you have placed yourself.
The returns, and the assumption each one rests on
Equity, cash-on-cash, IRR and exit value all fall out of the same monthly rows. Because they share a source, they move together when you change something — which is the point of changing it.
- Computed, not assembledEvery return figure comes from the same cash flow. There is no second set of numbers that can quietly disagree with the first.
- Sensitivity is the real outputThe number a deal lands on matters less than which assumption it is sensitive to. That is the one worth arguing about with a seller.
Total equity required
$6,200,000
Cash-on-cash (yr 1)
6.65%
Levered IRR
14.24%
Exit value
$21,940,000
Net operating income by hold year
Questions people ask
Is the model monthly or annual?
Monthly, across the whole hold. It matters because leases do not start and end in January. A lease expiring in November is eleven months of rent and one of nothing, and an annual model shows the same number whether it expired in November or the previous February.
Where does the income come from?
The rent roll. Each suite contributes its own scheduled rent for the month, plus recoveries according to its lease type. Nothing is entered as a lump income figure, which is what lets the result reconcile line by line against an operating statement.
What sits above the NOI line and what sits below?
Above: base rent, recoveries, other income, less vacancy and credit loss. Below: replacement reserves, tenant improvements, leasing commissions and capital expenditure. That placement is not bookkeeping pedantry — NOI multiplied by a cap rate is the valuation, so a reserve booked above the line lowers the price the income supports.
How are recoveries handled?
Per suite, by lease type. A triple-net tenant reimburses its share of taxes, insurance and common area maintenance; a gross tenant reimburses nothing; modified gross sits between them on the terms the lease actually sets. Blending them into one recovery rate is a common shortcut and it misstates both.
Can I change assumptions and see what moves?
Yes, and that is most of what the model is for. Growth, vacancy, exit cap, loan terms and every per-suite re-leasing assumption are editable, and everything recomputes from the rent roll. The useful output is usually not the number but which assumption the deal turns out to be sensitive to.
Where this goes next
Rent roll builder
The table every month of this is derived from.
Debt modeling
What the lender tests against this NOI.
Exit & sale modeling
Where most of the return actually is.
CapEx vs OpEx
Which side of the NOI line a cost belongs on.
CAM charges explained
How recoveries work, and who owes what.
All capabilities
Everything else the product does.
Model the hold, month by month.
Upload the documents, let DealWise build the rent roll, then watch every month of the hold compute from it — recoveries, vacancy, reserves and leasing costs each where they belong. Free plan, no credit card.