Investment Advisory
Real Estate Investment Advisory, Underwritten Before You Make an Offer
Buy-and-hold, BRRRR, short-term rental, small multifamily and 1031 exchange work across six metros, modeled with the assumptions left editable so you can argue with them.
We underwrite before we tour. A cap rate is net operating income divided by price, and the figure is only as honest as the NOI behind it: vacancy at a realistic rate for the submarket, management whether or not you hire it, turnover and leasing cost, a capital reserve, insurance that has been quoted rather than assumed, and property tax at the value the county will assess after your purchase rather than the value the seller has been protected at. That last line is the most common error in Texas, Arizona and Florida pro formas, and on its own it is frequently large enough to move a deal from positive to negative. Cap rate also excludes debt service by definition, which is why it never tells you whether a property cash flows; cash-on-cash return after the actual loan does.
Most investor purchases we work on now are financed with DSCR loans, which qualify the property instead of the borrower. The lender divides net operating income by annual debt service and typically wants about 1.20 or better, with twenty to twenty-five percent down, a rate premium over owner-occupied paper, a prepayment penalty in the early years, and title taken in an entity. They are convenient and they are more expensive, and the ratio is calculated on the lender's rent figure rather than yours, which is where most surprises come from.
Ownership is reported on Schedule E, residential rental property is depreciated over 27.5 years, and that depreciation is recaptured when you sell. A like-kind exchange defers it under the rules the IRS publishes rather than erasing it. We are not tax advisors, appraisers or attorneys, we say so plainly on the disclaimer, and exchange work is coordinated with your CPA and a qualified intermediary.
Every model arrives with the assumptions left editable so you can test them against your own view, and we would rather lose a commission than hand you a pro forma that only works if nothing goes wrong. Once a property is bought, property management is what protects the return; a primary residence follows the buyer process instead; submarket rules differ enough that market areas is worth reading before you shortlist anything. Questions are answered in the FAQ, and underwriting a specific address starts at contact or (512) 555-0142.
How it runs
What actually happens, stage by stage
Each stage ends in a document you keep, not a phone call you half-remember.
- Hold 5-10 years 20-25% down typical DSCR or conventional
Buy-and-hold single-family
The strategy that survives a bad year, if the reserve exists
One tenant, one roof, the simplest financing and the easiest exit, because owner-occupant buyers compete for the same asset. The whole question is whether the NOI you underwrote is the NOI you get.
- Taxes modeled at the reassessed post-sale value, not the seller's protected basis
- Vacancy, management, turn cost and a capital reserve deducted before any cap rate is quoted
- Cash-on-cash calculated after real debt service, closing costs and initial make-ready
- Rent supported by currently signed leases nearby, not by asking rents
- 12-18 month cycle Refi at 70-75% LTV Seasoning applies
BRRRR and value-add
Buy, rehab, rent, refinance, repeat, when the appraisal agrees
The method recycles capital only if the post-rehab appraisal supports the after-repair value you underwrote. We model the refinance first and work backwards to the purchase price you can pay.
- After-repair value built from renovated comparables, with the adjustments shown
- Rehab scope bid by two contractors before the offer, with a contingency line included
- Refinance modeled at a realistic loan-to-value and a rate you have actually been quoted
- Seasoning requirements confirmed with the lender in writing before the purchase closes
- Permit first Underwrite two ways Long-term fallback modeled
Short-term rental
Check the permit before you check the revenue projection
A short-term rental pro forma is worth exactly as much as the permit the property can legally obtain. We verify the current ordinance for the specific address and zoning district before discussing nightly rates.
- Permit legality confirmed per address: license type, zoning district and owner-occupancy rules
- Arizona limits how far a city may ban short-term rentals, but Phoenix and Scottsdale still license and enforce
- Nashville distinguishes owner-occupied from non-owner-occupied permits by zoning district
- Austin's short-term rental ordinance has been rewritten and litigated, so we check the current version
- HOA and condominium documents read for minimum lease terms, which quietly prohibit the strategy
- Entry strategy Owner-occupied terms 2-4 units
Small multifamily and house hacking
Two to four units, owner-occupied financing, a shorter runway
Living in one unit and leasing the others is the cheapest entry into rental ownership, because owner-occupied loan terms beat investor terms by a wide margin. It is also the strategy with the least distance between you and your tenants.
- Owner-occupied financing on two-to-four units at far lower down payments than investor loans
- FHA self-sufficiency test on three and four unit properties modeled before you offer
- Rental income from the other units counted toward qualifying, within agency limits
- Unit-by-unit rent roll, lease expiry and deposit ledger verified at estoppel
- 45 / 180 days Qualified intermediary required Deferred, not erased
1031 exchange coordination
Deferral on a calendar that does not forgive
An exchange defers capital gains and depreciation recapture on investment property, and it runs on fixed deadlines counted in calendar days including weekends and holidays. We coordinate the real estate side around your qualified intermediary and CPA.
- Forty-five days to identify replacement property, one hundred eighty days to close, from the relinquished sale
- A qualified intermediary must hold the proceeds; touching the funds ends the deferral
- Replacement value and debt replaced at or above the relinquished level to defer fully
- Replacement candidates underwritten in parallel with the sale, so the clock starts with options ready
Also from us
The rest of what TheKabza.com runs in-house
Every service is delivered by our own licensed staff, each on its own written agreement.
Start with a conversation, not a contract
Sixty minutes on your goals and constraints, and you leave with a written scope: what we will do, who will do it, the fee in dollars, and how to cancel. Nothing at TheKabza.com starts on a handshake.
- No obligation, no pressure
- A named agent on your file
- Written plan within 48 hours