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Methodology, data sources, and measurement standards for the modern investor.
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The Mona Methodology
Why we subtract vacancy first. Why we use CapEx reserves. How we calculate cash-on-cash return. A deep dive into the formulas that power our tools.
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Definitions & Formulas
Cap Rate
Net Operating Income divided by Purchase Price. A measure of unleveraged yield.
NOI / Price
DSCR
Debt Service Coverage Ratio. NOI divided by Total Debt Service. Lenders typically look for 1.25+.
NOI / Debt Service
Cash on Cash
Annual Cash Flow divided by Total Cash Invested (Down Payment + Closing Costs + Rehab).
Cash Flow / Cash to Close
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