Am I the Only One Wasting Hours Comparing FHA vs Conventional vs DSCR on Every Deal?
Scott JohnsonBusiness Member
Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votesAm I the Only One Wasting Hours Comparing FHA vs Conventional vs DSCR on Every Deal?
Most Popular Reply
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
11moyoure doing something wrong. Crunching the numbers on a residential deal shouldnt take more than ten minutes once youve built a decent model in excel. It's researching and finding the info for the inputs that takes the longest. What exactly are you doing for each loan?
29 Replies
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes11moIt seems that you could write a spreadsheet that would do that for you. I use one comparing taking over a loan, refinancing, and seller carry back. It actually isn't that tough. One of the kids n the neighborhood could write it for you for a few bucks or you could use someone like Fivver.com
Quote from @Scott Johnson:
Hey, guys and gals!
Okay, so I just spent 2 hours analyzing ONE property across different loan types. Had to use 4 different calculators, re-enter the same data each time, and manually compare results in a spreadsheet.
My workflow:
- BiggerPockets calculator for conventional
- FHA.com calculator for FHA loans
- Random DSCR lender site for non-QM
- Excel to compare everything side-by-side
- Rip my hair out...
I'm curious how everyone else handles this. Are you all jumping between multiple calculators like I am, or have you found something that actually handles different loan types? I feel like I'm spending more time on data entry than actual analysis at this point - literally typing the same address and purchase price into 3-4 different websites. I know I could make an "all encompassing" spreadsheet,
And honestly? I've started being pretty selective about when I'll run DSCR numbers. Unless the deal specifically needs non-QM financing, it's hard to justify the extra time hunting down a lender calculator and figuring out their specific requirements just to compare it against conventional. Seller financing is another one - great option in theory, but modeling those scenarios takes forever so I only do it when the seller explicitly mentions it.
I'm betting I'm leaving money on the table by not exploring every financing angle, but there's only so many hours in the day. Anyone else being strategic (or lazy?) about which financing options you actually take time to analyze? Or is there some tool out there that makes this comparison process less painful that I just haven't discovered yet?
- Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes11mo
@Ken M. True, and I technically have one for comparing them side-by-side now, lol. I just haven't fully implemented it into a cumulative sheet.
The thought in my mind, though, is collaboration with a broker. is it good enough to share a spreadsheet with them so they can see the numbers if they know about investments? Or is there a more collaborative way of working with them on the numbers? Or should I just be doing the numbers myself and use whatever Broker can fog mirror that knows how to help people by real estate?
Don't get me wrong, I AM a broker. I'm referring more towards purchasing in another area that I don't know. Much rather use another broker who knows the area.
That may be another post in of itself.
- Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes11mo
youre doing something wrong. Crunching the numbers on a residential deal shouldnt take more than ten minutes once youve built a decent model in excel. It's researching and finding the info for the inputs that takes the longest. What exactly are you doing for each loan?
- Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes11mo
@Patrick Roberts i'm doing a full analysis for each loan type, but I'm using multiple calculators to calculate the loan types. i'm trying to get an idea for the best lending approach, since I have multiple options available. The plan for this to not unoccupied, but for FHA of course I would need to occupy one side, or one bedroom if I house hacked home with more bedrooms.
- 11moAJ ExnerPro MemberLender · Springfield, MO · Member since 2023 · 651 posts · 314 votes
Hey @Scott Johnson
Have you considered running it through a DSCR broker and letting them do the heavy lifting? Any good broker who operates with enough volume should get wholesale pricing with the top DSCR lenders (some of whom don't have retail arms and you would never find anyways).
If you just compared with a broker with some random conventional (many are pretty similar) then not only would you get the best representation of DSCR pricing, but they might also help you to sift through various lender requirements and sniff out any potential implications. Plus, it would give you back what sounds like is a lot of time to help decide faster and keep moving.
Just shot you a DM, would love to connect to see if we could help.
Good luck!
- Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes11mo
Quote from @AJ Exner:
Hey @Scott Johnson
Have you considered running it through a DSCR broker and letting them do the heavy lifting? Any good broker who operates with enough volume should get wholesale pricing with the top DSCR lenders (some of whom don't have retail arms and you would never find anyways).
If you just compared with a broker with some random conventional (many are pretty similar) then not only would you get the best representation of DSCR pricing, but they might also help you to sift through various lender requirements and sniff out any potential implications. Plus, it would give you back what sounds like is a lot of time to help decide faster and keep moving.
Just shot you a DM, would love to connect to see if we could help.
Good luck!
I guess it goes back to the "what if I keep hounding them about deals" when I'm hunting for one. Feel like they'd get tired of me after a while. It's also the impatience/timeline aspect of it, I guess. If I request the info from the lender and I don't hear back and lose the deal, what have I gained?
Reaching out to the lender seems to be the consensus for a lot of members.
- Lender · Cary, NC · Member since 2021 · 122 posts · 29 votes11mo
Hi Scott,
When it comes to running financing numbers, thats what a good lender is for! I am with The One Brokerage that David Greene and Christian Bachelder built to have systems in place where I can do this for you and have access to hundreds of lenders.
I love talking REI and helping my clients with financing strategy. Lets connect and you can reach out anytime to run a scenario.
Cheers! Kate
- 11moAlecia LovelessPro MemberMember since 2019 · 3k+ posts · 2k+ votes
@Scott Johnson Hi Scott. I’ve got a solid relationship with a great lender and while I could probably find slightly better terms somewhere else the convenience of always having the same point of contact, always being able to talk to a decision maker if I need help, and having a lender who values me and my business just wins out every time over trying to get the lowest possible rate with hours of comparison.
I might be leaving some money on the table by doing this but ultimately I feel like it’s a much more solid plan than going with some mystery lender I know nothing about.
- 11moStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 496 votes
This really depends on if you are going to live in the unit or not. VA and FHA loans are for owner occupied units. There are conventional investment property loans- there will be more paperwork than a DSCR loan. Conventional is also structured based on your DTI ratios and DSCR is structured on the actual or projected rent schedule (depending on if occupied or not at purchase). It really depends on your specific situation- occupancy, credit score, down payment, DTI as to what loan product would be best. Happy to connect to discuss further.
Bright Skyline518 Reviews - Member since 2025 · 10 posts · 2 votes11mo
Scott - what kind of strategy are you employing? We buy 100s of properties a year, typically one-by-one, and if I can't do the math on a piece of paper I won't do it. If you know a market, it should take <5 min to see if it's worth spending time on.
A good heuristic we use is checking two metrics as a first pass:
1. Gross yield. How much rent can I generate per year vs. my basis? We target 16%+
2. What is my basis vs. ARV? We target 75% to give ourselves built in equity and a margin of error
We find that if we can hit those two metrics, they are financeable properties. We also find that our underwriting becomes less sensitive to the cost of capital because our ROI is so high. Rates can change 25-50bps and we can still cash flow a property.- Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes11mo
Quote from @Sam Page:
Scott - what kind of strategy are you employing? We buy 100s of properties a year, typically one-by-one, and if I can't do the math on a piece of paper I won't do it. If you know a market, it should take <5 min to see if it's worth spending time on.
A good heuristic we use is checking two metrics as a first pass:
1. Gross yield. How much rent can I generate per year vs. my basis? We target 16%+
2. What is my basis vs. ARV? We target 75% to give ourselves built in equity and a margin of error
We find that if we can hit those two metrics, they are financeable properties. We also find that our underwriting becomes less sensitive to the cost of capital because our ROI is so high. Rates can change 25-50bps and we can still cash flow a property.This is really interesting. I've never heard of using those metrics (Gross Yield and Basis/ARV). Is the Gross Yield basically stating "this is how much of my basis I get back (gross) each year"? Wouldn't I just want to calculate out the CoC? I'm interested to understand what draws you to use these metrics.
- Member since 2025 · 10 posts · 2 votes11mo
Quote from @Scott Johnson:
Quote from @Sam Page:
Scott - what kind of strategy are you employing? We buy 100s of properties a year, typically one-by-one, and if I can't do the math on a piece of paper I won't do it. If you know a market, it should take <5 min to see if it's worth spending time on.
A good heuristic we use is checking two metrics as a first pass:
1. Gross yield. How much rent can I generate per year vs. my basis? We target 16%+
2. What is my basis vs. ARV? We target 75% to give ourselves built in equity and a margin of error
We find that if we can hit those two metrics, they are financeable properties. We also find that our underwriting becomes less sensitive to the cost of capital because our ROI is so high. Rates can change 25-50bps and we can still cash flow a property.This is really interesting. I've never heard of using those metrics (Gross Yield and Basis/ARV). Is the Gross Yield basically stating "this is how much of my basis I get back (gross) each year"? Wouldn't I just want to calculate out the CoC? I'm interested to understand what draws you to use these metrics.
On gross yield, it's even more rudimentary than your description. Basically, you could use a ~40% expense ratio to figure out your yield on cost. So, if I buy something at a 16% gross yield, I'm at a 9.6% YOC (unlevered). Interest rates for our bulk refis are coming at 5T + 3.15%...so if I priced it today it's at 6.71% give or take. I know that will cash flow. I don't need to build out a full model on a house because I know our existing expense ratios and cost of capital. It's a simplified metric to help me find out if a house is worth spending any amount of time on.
Nothing wrong with targeting CoC returns, but sometimes my CoC is infinite (we can be in a property for $0 out of pocket, and actually get some money back at refi).
I guess if you wanted to be more intellectually honest, you could argue whatever equity I believe we've created through the value add (that difference between my basis and ARV), and use that as my denominator on the CoC and see if that's an acceptable figure (and if I would be better off realizing that gain and doing something else with it). We don't think of it this way for our business as we are aggregating 1000s of homes and have a long duration time horizon. - Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes11mo
@Sam Page OK, I think I'm understanding now. So basically you're taking your historical figures from other deals that you've done in the past and acquired and using averages based on those numbers for your calculations?
- 11moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Scott Johnson:
Hey, guys and gals!
Okay, so I just spent 2 hours analyzing ONE property across different loan types. Had to use 4 different calculators, re-enter the same data each time, and manually compare results in a spreadsheet.
My workflow:
- BiggerPockets calculator for conventional
- FHA.com calculator for FHA loans
- Random DSCR lender site for non-QM
- Excel to compare everything side-by-side
- Rip my hair out...
I'm curious how everyone else handles this. Are you all jumping between multiple calculators like I am, or have you found something that actually handles different loan types? I feel like I'm spending more time on data entry than actual analysis at this point - literally typing the same address and purchase price into 3-4 different websites. I know I could make an "all encompassing" spreadsheet,
And honestly? I've started being pretty selective about when I'll run DSCR numbers. Unless the deal specifically needs non-QM financing, it's hard to justify the extra time hunting down a lender calculator and figuring out their specific requirements just to compare it against conventional. Seller financing is another one - great option in theory, but modeling those scenarios takes forever so I only do it when the seller explicitly mentions it.
I'm betting I'm leaving money on the table by not exploring every financing angle, but there's only so many hours in the day. Anyone else being strategic (or lazy?) about which financing options you actually take time to analyze? Or is there some tool out there that makes this comparison process less painful that I just haven't discovered yet?
Hey Scott,
Is there a reason why you are running 4 different loan options? Is this an owner-occupied purchase or non-owner occupied purchase?
LuxePrivate Investments LLC 572 Reviews- Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes11mo
Quote from @Erik Estrada:
Quote from @Scott Johnson:
Hey, guys and gals!
Okay, so I just spent 2 hours analyzing ONE property across different loan types. Had to use 4 different calculators, re-enter the same data each time, and manually compare results in a spreadsheet.
My workflow:
- BiggerPockets calculator for conventional
- FHA.com calculator for FHA loans
- Random DSCR lender site for non-QM
- Excel to compare everything side-by-side
- Rip my hair out...
I'm curious how everyone else handles this. Are you all jumping between multiple calculators like I am, or have you found something that actually handles different loan types? I feel like I'm spending more time on data entry than actual analysis at this point - literally typing the same address and purchase price into 3-4 different websites. I know I could make an "all encompassing" spreadsheet,
And honestly? I've started being pretty selective about when I'll run DSCR numbers. Unless the deal specifically needs non-QM financing, it's hard to justify the extra time hunting down a lender calculator and figuring out their specific requirements just to compare it against conventional. Seller financing is another one - great option in theory, but modeling those scenarios takes forever so I only do it when the seller explicitly mentions it.
I'm betting I'm leaving money on the table by not exploring every financing angle, but there's only so many hours in the day. Anyone else being strategic (or lazy?) about which financing options you actually take time to analyze? Or is there some tool out there that makes this comparison process less painful that I just haven't discovered yet?
Hey Scott,
Is there a reason why you are running 4 different loan options? Is this an owner-occupied purchase or non-owner occupied purchase?
Non Owner-Occupied.
- 11moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Scott Johnson:
Quote from @Erik Estrada:
Quote from @Scott Johnson:
Hey, guys and gals!
Okay, so I just spent 2 hours analyzing ONE property across different loan types. Had to use 4 different calculators, re-enter the same data each time, and manually compare results in a spreadsheet.
My workflow:
- BiggerPockets calculator for conventional
- FHA.com calculator for FHA loans
- Random DSCR lender site for non-QM
- Excel to compare everything side-by-side
- Rip my hair out...
I'm curious how everyone else handles this. Are you all jumping between multiple calculators like I am, or have you found something that actually handles different loan types? I feel like I'm spending more time on data entry than actual analysis at this point - literally typing the same address and purchase price into 3-4 different websites. I know I could make an "all encompassing" spreadsheet,
And honestly? I've started being pretty selective about when I'll run DSCR numbers. Unless the deal specifically needs non-QM financing, it's hard to justify the extra time hunting down a lender calculator and figuring out their specific requirements just to compare it against conventional. Seller financing is another one - great option in theory, but modeling those scenarios takes forever so I only do it when the seller explicitly mentions it.
I'm betting I'm leaving money on the table by not exploring every financing angle, but there's only so many hours in the day. Anyone else being strategic (or lazy?) about which financing options you actually take time to analyze? Or is there some tool out there that makes this comparison process less painful that I just haven't discovered yet?
Hey Scott,
Is there a reason why you are running 4 different loan options? Is this an owner-occupied purchase or non-owner occupied purchase?
Non Owner-Occupied.
Then the only 3 rates you should compare to are DSCR, Conventional Investment, or Private/Local bank. FHA is for owner-occupied properties only. There is a huge pricing difference between a conventional owner occupied and a non owner occupied loan.
LuxePrivate Investments LLC 572 Reviews - 11moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Scott Johnson:
Quote from @Erik Estrada:
Quote from @Scott Johnson:
Hey, guys and gals!
Okay, so I just spent 2 hours analyzing ONE property across different loan types. Had to use 4 different calculators, re-enter the same data each time, and manually compare results in a spreadsheet.
My workflow:
- BiggerPockets calculator for conventional
- FHA.com calculator for FHA loans
- Random DSCR lender site for non-QM
- Excel to compare everything side-by-side
- Rip my hair out...
I'm curious how everyone else handles this. Are you all jumping between multiple calculators like I am, or have you found something that actually handles different loan types? I feel like I'm spending more time on data entry than actual analysis at this point - literally typing the same address and purchase price into 3-4 different websites. I know I could make an "all encompassing" spreadsheet,
And honestly? I've started being pretty selective about when I'll run DSCR numbers. Unless the deal specifically needs non-QM financing, it's hard to justify the extra time hunting down a lender calculator and figuring out their specific requirements just to compare it against conventional. Seller financing is another one - great option in theory, but modeling those scenarios takes forever so I only do it when the seller explicitly mentions it.
I'm betting I'm leaving money on the table by not exploring every financing angle, but there's only so many hours in the day. Anyone else being strategic (or lazy?) about which financing options you actually take time to analyze? Or is there some tool out there that makes this comparison process less painful that I just haven't discovered yet?
Hey Scott,
Is there a reason why you are running 4 different loan options? Is this an owner-occupied purchase or non-owner occupied purchase?
Non Owner-Occupied.
Most brokers can provide a quote for all 3 options
LuxePrivate Investments LLC 572 Reviews
- Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes11mo
You might be experiencing "analysis paralysis." Do you gain material knowledge in running the borrowing scenario 4 different ways? (As mentioned above, VA and FHA are for owner occupied only, so BP just saved you half your time there!)
I have an Excel model that takes basic inputs which includes 1 set of projected PITI payments and gives me an incorrect estimate of how the property will perform every time. Incorrect? Yes, absolutely. All models are wrong, but some are useful. I find this one useful to decide if I want to step further into this deal opportunity or discard it. I am not trying to calculate the return to dollars and cents.
My guess is you might be trying to sharpen your pencil too much and it is wasting your time. The variability of your renovation costs probably far exceeds the accuracy you might get from your model and your model probably only contains a guess at the renovation costs. My suggestion is to spend less time in the modeling and more time in the properties to get a feel for what they need, income potential and expense to get there.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes11mo
You seem to be LIS - lost in spreadsheets. And I assume that extends beyond the financing part. The vanilla advice on BP is to trust your numbers, but if that's your ONLY criteria, it will lead to really stupid decisions. Spreadsheets give you a false sense of accuracy. I can "prove" to you on a spreadsheet whatever I want by tweaking 5 or 6 assumptions, each one just a little. Same with financing.
I would recommend flip it arround: run your numbers dry (without an actual address) and then know exactly what you are looking for and it changes your decision-making process. What you currently do results in a number, but you will always feel it could be better. If you run your numbers first and then evaluate a listing against it it's a clear pass/fail. It meets your criteria or it doesn't.
- Member since 2020 · 351 posts · 329 votes11mo
I add 1% to the interest rate zillow suggests and use those numbers. Ultimately it just comes down to is the rent ~$500 more than what I guess PITI or not and would I move my family into the neighborhood. My estimate of PITI really only needs to be right to the nearest $50/mo (and usually comes in high). 50/mo is $600/year. If $600/year breaks your 300k investment you have bigger issues on hand.
- 11moRob HowardPro MemberKnoxville TN, USA · Member since 2023 · 61 posts · 42 votesI might be WAY off base here - but why not create an in-depth prompt on all of your scenarios with your favorite LLM? I have created a Gemini Gem to discuss scenarios with for things like that. It pulls up-to-the-moment data from myriad publicly available sources, then I fill in the specialized info that I have. It runs the same functions every time. Heck, you could put in the question you posted here and ask Claude AI to create your prompt for you. It will make something more richly detailed than you’re likely able to do yourself on a spreadsheet. Then another ChatGpt or Gemini can do everything that took you a day to so - summarize the pros and cons, then make a list of your contacts to call to make it happen. This has made me a better realtor, training it to do those things so I can do what I do best - negotiate, work with people and do the things that robots can’t.
- 11moRob HowardPro MemberKnoxville TN, USA · Member since 2023 · 61 posts · 42 votes
@Rob Howard This is what Claude created for your query:
The Prompt: Property Investment Analysis - Multi-Loan Comparison I need a comprehensive investment analysis for a property comparing ALL viable financing options side-by-side. Here’s the property information: Property Details: • Address: [ADDRESS] • Purchase Price: $[AMOUNT] • Property Type: [Single-family/Multi-family/etc.] • Number of Units: [NUMBER] • Current/Expected Monthly Rent: $[AMOUNT] • Property Condition: [Turn-key/Needs rehab/etc.] • Down Payment Available: $[AMOUNT] or [%] My Situation: • Credit Score: [SCORE] • Annual Income: $[AMOUNT] • Current DTI: [%] • Investment Properties Owned: [NUMBER] • Will this be owner-occupied? [Yes/No] Instructions: 1. Search for CURRENT rates and requirements (today’s date) for: • Conventional investment loans (5%, 15%, 20%, 25% down) • FHA (if owner-occupied) • VA (if applicable) • DSCR/Non-QM loans (75-80% LTV) • Portfolio lenders in [YOUR MARKET] 1. For EACH loan type, calculate: • Monthly PITI payment • Cash needed at closing (down payment + closing costs) • Monthly cash flow (rent minus PITI, insurance, PM, maintenance, vacancy, CapEx) • Cash-on-cash return • 5-year and 10-year total return projections • Break-even analysis • DSCR ratio 1. Create a comparison table showing all options ranked by: • Best cash flow • Lowest cash to close • Best 5-year ROI • Most conservative/safest option 1. Red flags section: Tell me if any metrics suggest I should walk away 2. Seller financing consideration: If conventional cash flow is negative or marginal, model a seller financing scenario with [X]% down, [Y]% rate, [Z] year term Output format: Give me the executive summary first (which option wins and why), then detailed breakdowns, then the full comparison table. Pro Tips for This User: To make this REUSABLE, save this prompt in your Claude Projects with: • Your standard assumptions (insurance rates, PM fees, vacancy %, CapEx %, closing cost estimates for your market) • Your typical financing profile • Common property types you analyze ------------------------ Then each new property only requires updating the address, price, and rent. Claude or Gemini will pull current rates every time you run it. Alternative/Supplementary Tools: • Perplexity Pro - If you specifically just need rate shopping across lenders (it’s extremely good at real-time web research) • ChatGPT Plus with browsing - Similar capabilities, but smaller context window • Build a custom GPT in ChatGPT specifically for this workflow if you want a dedicated tool
- Member since 2025 · 2 posts · 0 votes11mo
ChatGPT is your new BFF, Scott. I am in exactly the same boat you described in trying to compare apples and orangutans. I ask each lender to send me a term sheet, and I copy it into Chatty Gupta, and voila, all the heavy lifting is done. It feels like cheating, but the savings pays for the therapy. Seriously, give it a shot and I'd love to hear your thoughts.
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes11mo
Quote from @Jeff Coffey:
ChatGPT is your new BFF, Scott. I am in exactly the same boat you described in trying to compare apples and orangutans. I ask each lender to send me a term sheet, and I copy it into Chatty Gupta, and voila, all the heavy lifting is done. It feels like cheating, but the savings pays for the therapy. Seriously, give it a shot and I'd love to hear your thoughts.
.
Your comment "ChatGPT is your new BFF"
Interestingly, I put "chatgpt bad advice real estate" in and it responded with
"Using ChatGPT for real estate advice can lead to significant risks due to its tendency to generate inaccurate or fabricated information,often referred to as "hallucinations". While it can assist with drafting property descriptions or generating initial ideas, it is not reliable for creating legally binding contracts or providing up-to-date market data. For instance, ChatGPT may invent amenities, misrepresent property features, or provide outdated information, such as mortgage rates or market conditions, since its training data only extends to 2021. This can result in misleading listings or poor decision-making, especially when dealing with complex transactions or regulatory compliance.
Moreover, ChatGPT cannot ensure adherence to local and state real estate regulations, including fair housing laws, and may produce content that inadvertently discriminates based on race, gender, or other protected categories. It also lacks the ability to provide personalized, context-specific advice tailored to a buyer's or seller's unique circumstances, such as neighborhood-specific trends or nuanced negotiation strategies."
- Member since 2025 · 2 posts · 0 votes11mo
Hey Ken, your point is well-taken about being cautious when using Chatty Gupta as a tool. Interestingly, though, in my experience when CGPT makes a mistake (i.e., hallucinates) I found the mistake to be a doozy and easily identified. My suggestion would be to put it to a simple test: make up 2 loan offers with wildly different terms, copy them into CGPT, and then ask it "So, which is the better deal?" I think you'll be pleasantly surprised with the thoughtful and nuanced replies.
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes11moMaybe it's useful for some things, but a student of mine was trying to solve a problem, put it into ChatGPT and the answer looked good, except that it would get you sued. He was new so he didn't know that. ChatGPT doesn't discern. That's my experience.
Quote from @Jeff Coffey:
Hey Ken, your point is well-taken about being cautious when using Chatty Gupta as a tool. Interestingly, though, in my experience when CGPT makes a mistake (i.e., hallucinates) I found the mistake to be a doozy and easily identified. My suggestion would be to put it to a simple test: make up 2 loan offers with wildly different terms, copy them into CGPT, and then ask it "So, which is the better deal?" I think you'll be pleasantly surprised with the thoughtful and nuanced replies.
- Rental Property Investor · Fairfield County, CT · Member since 2024 · 13 posts · 6 votes12h
Scott, the problem you're describing is legitimate, and the “just build a better Excel model” answer doesn't really solve it. The issue isn't just doing the math. Each financing option has different inputs, assumptions, and parameters, and you're still gathering information from different places and trying to get everything into a comparable view.
For a non-owner-occupied deal, that really brings the comparison down to things like Conventional, DSCR, and Investment/Portfolio financing.
I actually built a tool called Plurivia around this exact problem. You enter the property and deal information once, then compare financing scenarios side by side instead of rebuilding the analysis for each one.
It's free and in beta at plurivia.com. If you run one of your deals through it, I'd genuinely be interested in whether it solves the problem you were describing here or where it still falls short.
- 9hShiloh LundahlPro MemberRental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
Why don't you just build a calculation model into Claude that evaluates all three financing options? Then you could just put the address into it and the purchase price to see what answers it generates. This would save you from doing any more calculating.
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