InvestorLens — Methodology

🔍 How We Find Properties

When you search for a location, our AI agent (powered by GitHub Copilot CLI) searches the web in real time for active real estate listings that match your criteria. The agent looks for properties listed on major platforms like Zillow and Redfin, extracting key details such as price, bedrooms, bathrooms, square footage, and property type.

Simultaneously, the agent researches local Airbnb market data — average nightly rates, occupancy rates, and seasonal trends — from publicly available market reports and listing platforms.

💰 Financial Calculations

Every metric displayed is computed in real time. Here are the formulas behind each one:

Net Operating Income (NOI)

NOI = Annual Revenue − Operating Expenses

Cap Rate

Cap Rate = (NOI ÷ Purchase Price) × 100

Cash Flow

Cash Flow = NOI − Annual Mortgage Payment

Cash-on-Cash Return

Cash-on-Cash Return = (Annual Cash Flow ÷ Down Payment) × 100

Return on Investment (ROI)

ROI = (Cash Flow + Annual Equity Buildup) ÷ Down Payment × 100

Break-Even Occupancy

Break-Even Occ. = (Expenses + Mortgage) ÷ (Nightly Rate × 365) × 100

📋 Expense Assumptions

Operating expenses are estimated using industry-standard rates applied to each property:

Property TaxLocal rate

Insurance0.4% of price

Maintenance1% of price

Management15% of revenue

Cleaning8% of revenue

Utilities$3,600/yr

🏦 Mortgage Assumptions

Default mortgage parameters are set to common market values, but all can be adjusted in real time using the interactive sliders on the results page:

Down Payment20%

Interest Rate7.0%

Loan Term30-year fixed

AmortizationStandard

Monthly mortgage is calculated using the standard amortization formula. When you move the sliders, all downstream metrics (cash flow, ROI, break-even) recalculate instantly.

⭐ Investment Score

Each property receives a composite Investment Score (0–100) based on a weighted blend of key metrics:

Cap Rate

30%

CoC Return

25%

Cash Flow

20%

Risk Level

15%

Break-Even

10%

Higher scores indicate more attractive investment opportunities across multiple dimensions.

📊 Sensitivity Analysis

Each property detail view includes a three-scenario sensitivity analysis to help you understand upside and downside risk:

Pessimistic

Occupancy −15%
Nightly Rate −10%

Base Case

Current estimates
as displayed

Optimistic

Occupancy +10%
Nightly Rate +15%

🌐 Data Sources

Property Listings: Real-time results from Zillow and Redfin via AI-powered web search. Listings are not cached and reflect current market conditions at the time of search.
Airbnb Market Data: Average nightly rates and occupancy rates sourced from public Airbnb market reports, AirDNA summaries, and aggregated listing data.
Property Tax Rates: Local tax rates sourced from county assessor data and public records via web research.

⚠️ Limitations

Seasonal variations in occupancy and nightly rates are not modeled — estimates use annual averages.
HOA fees are not included in expense calculations unless explicitly found in the listing.
Renovation and repair costs are not estimated — properties are assumed to be rent-ready.
Local regulations (short-term rental permits, zoning) are not checked automatically.
Appreciation and depreciation are not factored into the ROI calculation.
Insurance and tax rates may differ from actual rates — always verify with local providers.
All figures are estimates. Always perform your own due diligence and consult licensed professionals before investing.

Our Methodology