Free Tool · Real Estate Edition

Does the real estate carry its weight?

Model NOI, cap rate, and SBA 504 financing for real-estate-anchored acquisitions — self-storage, car washes, laundromats, and more. Or switch to Business + Real Estate if the property comes bundled with an operating company.

NOI & Cap Rate SBA 504 (10/40/50) SBA 7(a) Coverage Ratio Business + Real Estate

Deal Inputs

For deals where the real estate is the business — self-storage, car washes, laundromats, RV/boat storage, and similar property-driven operations.

The Property
Purchase price of the property
$
Income after all operating expenses
$
Financing Structure
Your down payment
$
Optional seller financing
$
10-year term assumed
%
5-year term assumed
%
SBA 504 split (auto-calculated): 10% borrower equity, 40% SBA 504 loan (25-yr, CDC-issued, fixed rate), 50% bank loan (25-yr). On a $1,200,000 property, that's $120,000 equity, $480,000 SBA 504, and $600,000 bank loan.
25-year term
%
25-year term
%
Cash Flow
Optional — salary drawn from the property
$
Deal Basics
Total price, including real estate
$
Seller's Discretionary Earnings
$
Your replacement salary
$
Real Estate
Portion of the price attributed to the property
$
Separate mortgage on the real estate
$
%
yrs
Capital Stack
Your down payment
$
Seller financing amount
$
SBA / Seller Note Terms
10-year term assumed
%
5-year term assumed
%
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Enter your deal inputs

Fill in the numbers on the left and click Calculate to see your DSCR, debt service, cash flow, and EBITDA multiple.

The Searcher's Guide

What these numbers actually mean for a real-estate-anchored deal

What is Cap Rate and why does it matter?

Cap rate (capitalization rate) tells you the unlevered return a property generates relative to its price — before financing enters the picture. It's the quickest way to sanity-check whether the asking price reflects the income the property actually produces.

Cap Rate = Net Operating Income ÷ Real Estate Value
A cap rate below 5% usually means you're paying a premium for the location, asset class, or growth story — financing will need to do a lot of work to make the deal cash flow. 5–7% is a workable middle ground for most property-driven SMB acquisitions. Above 7% generally signals a higher-yield, often more management-intensive asset.

SBA 504 vs. SBA 7(a) — which fits a real-estate-heavy deal?

SBA 7(a) is the standard acquisition loan: one lender, one note, typically a 10-year term for business acquisitions. SBA 504 is purpose-built for owner-occupied commercial real estate — a bank originates a first mortgage (50%), a Certified Development Company issues a second mortgage backed by the SBA (40%), and you put down as little as 10% equity. The 504 program's fixed-rate second mortgage and lower down payment make it attractive when the real estate is the primary asset — but it adds moving parts (two lenders, two closings) and generally requires the property to be owner-occupied.

Coverage Ratio — does the property's income cover the debt?

For real-estate-primary deals, coverage ratio plays the same role DSCR plays for an operating business: it tells you whether the income the asset throws off is enough to service the debt against it, with margin to spare.

Coverage Ratio = NOI ÷ Total Annual Debt Service
This calculator uses the same lender-standard thresholds as standard SBA underwriting: 1.15x SBA minimum, 1.25x typical lender policy minimum, 1.35x+ lender comfort zone. If the property doesn't clear 1.25x on its own income, the deal is relying on something else — an operating business on-site, additional collateral, or a lower purchase price — to make the financing work.

Business + Real Estate — when should the property be part of the deal?

Many Main Street acquisitions bundle the building with the business. That's often simpler — one closing, one seller — but it changes the math: the real estate now competes with the operating business for the same debt capacity. If the real estate makes up more than half the purchase price, or its standalone cap rate is thin, it's worth asking whether a separate lease (or a sale-leaseback) would let the business carry less debt and the real estate stand on its own financing.

What this calculator doesn't include

This free tool models a single base scenario. It doesn't account for working capital needs, capital improvement reserves, environmental or appraisal contingencies, multi-tenant lease structures, or lender-specific underwriting overlays — all of which matter more, not less, when real estate is involved. For a complete lender-grade analysis across three scenarios — including what your SBA lender will actually see — use DealEconomics.

Go Deeper

This is one scenario. Real estate deals deserve the full picture.

Three scenarios, NOI/cap rate and SBA 504 modeling, lender-grade coverage analysis, CIM PDF analysis, risk flags, and contextual AI deal analysis — all in one place.

Real Estate Deal Types (Business + RE, RE Primary) SBA 504 & 7(a) modeling Three scenario modeling Lender Analysis (Coverage Ratio) Share Deal Room with your deal team CIM PDF Analysis Risk Flags (RE concentration, cap rate) AI Deal Summary
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