How PropertySignal scores a real estate deal
PropertySignal turns a U.S. property address into a Buy, Caution, or Pass verdict instantly. The score comes out of a six-stage analysis pipeline that separates facts from interpretation, so you can see not just what the verdict is but why, and which single assumption would change it.
Questions about a specific metric or verdict? Drop an address on the Analyze page and see it live.
What data does PropertySignal use?
PropertySignal pulls property value, comparable rent, and county tax records from RentCast for any U.S. address. Each estimate includes a confidence range so you see the spread, not just the point estimate. Every field is editable. The moment you confirm or override a value, your number replaces the API estimate and the score recomputes.
What metrics does PropertySignal calculate?
From your inputs and assumptions:
- Monthly cashflow
- Rent minus mortgage, taxes, insurance, maintenance, vacancy allowance, and management.
- Cap rate
- Net operating income divided by purchase price, expressed as an annual yield.
- Cash-on-cash return
- Annual cashflow divided by total cash invested (down payment plus closing).
- Horizon equity growth
- Total equity built over your holding period from appreciation plus principal paydown.
- Return on equity
- Annualized equity growth over initial cash invested.
- Break-even year
- The year cumulative cashflow plus equity growth first turns positive.
How is the verdict decided?
The verdict is a tiered output of a weighted composite score, adjusted for your strategy (long-term rental, short-term rental, or primary home), your goal (balanced, cashflow-focused, or equity-focused), and your holding horizon. The three verdict labels — Buy, Caution, Pass — reflect a weighted composite score calibrated to your strategy, goal, and holding horizon.
What is the benchmark return?
PropertySignal compares your projected return against a benchmark tied to the current rate environment. The default is the 10-year Treasury yield plus a 4% risk premium— the conventional framework used in residential underwriting. The 4% premium compensates for the illiquidity, leverage, and operational overhead of holding property versus a passive bond position. Verdict copy like “above benchmark” or “below benchmark” references this target. The 10-year Treasury snapshot is refreshed roughly quarterly. You can override the default in the assumptions editor under Target return if your own opportunity cost is different.
Why only one risk and one action?
Most underwriting tools list every concern at equal weight, which offloads the triage onto you. PropertySignal applies a single-slot rule: at most one primary narrative, one dominant risk, one strongest positive, and one best action per analysis. PropertySignal resolves overlapping signals into a clean recommendation, so a deal that's an appreciation play with cash burn reads as exactly that, not as a six-bullet anxiety list.
What can change the verdict?
Every input is a lever. Lowering the purchase price, raising achievable rent, switching from long-term to short-term rental, extending the holding horizon, or changing the down payment all recompute the score in real time. PropertySignal also surfaces the specific rent or price you'd need to clear break-even, so “what would have to be true” is always one line away.
Who built PropertySignal?
PropertySignal is built by Nuthatch. Questions, data requests, or methodology challenges: hello@propertysignal.ai.
Is this financial advice?
No. PropertySignal is an underwriting tool for informational use during property research. Scores, verdicts, and recommendations are based on the inputs and assumptions you enter and do not constitute financial, tax, or legal advice. See the terms for the full disclaimer.