How to Read a Feasibility Pro Forma in 60 Seconds
The four numbers that matter
Skip the twenty-tab spreadsheet. On a first pass, a feasibility read comes down to four figures:
- Number of units you can build.
- Unit size (rentable square footage).
- All-in construction cost.
- Rental pro forma — the yield on that cost.
If those four don't clear your threshold, no amount of finish-level detail saves the deal.
Reading the yield
Take projected annual rent, subtract operating costs, divide by all-in cost. That unlevered yield is your first filter:
A feasibility pro forma is a screening tool, not an appraisal. Its job is to kill bad deals fast and flag good ones for a real underwrite.
One caution on the score
Automated feasibility tools produce an overall "score." Treat it as directional, not gospel — the financial scenario behind it can be off. Every number gets a human review before it drives a decision.
Want the four numbers on your address?
That's the whole point of the free feasibility read.