Investment Property Analysis Prompt

Investor clients make decisions based on numbers, not emotions. This prompt generates a structured investment analysis you can present during a consultation or include in a property recommendation package. It covers the metrics investors actually care about.

The Prompt

Generate an investment property analysis for a real estate investor client.

Property Details:
- Address: [PROPERTY ADDRESS]
- Purchase Price: [PRICE]
- Property Type: [SINGLE-FAMILY RENTAL / DUPLEX / TRIPLEX / CONDO / MULTI-FAMILY]
- Bedrooms/Bathrooms: [BED/BATH per unit if multi-family]
- Square Footage: [TOTAL SF]
- Year Built: [YEAR]
- Condition: [TURNKEY / LIGHT RENO NEEDED / MAJOR RENO NEEDED]

Financial Inputs:
- Down Payment: [AMOUNT or PERCENTAGE]
- Interest Rate: [RATE]
- Amortization: [YEARS]
- Estimated Monthly Rent: [AMOUNT per unit - specify if multi-unit]
- Property Tax (annual): [AMOUNT]
- Insurance (annual): [AMOUNT]
- HOA/Condo Fees (monthly): [AMOUNT or N/A]
- Estimated Vacancy Rate: [PERCENTAGE - typically 5-8%]
- Property Management Fee: [PERCENTAGE or N/A if self-managed]
- Estimated Annual Maintenance: [AMOUNT or PERCENTAGE of rent]
- Estimated Renovation Costs: [AMOUNT if applicable]

Generate a complete analysis including:
1. MONTHLY CASH FLOW BREAKDOWN: Revenue minus all expenses, showing each line item
2. ANNUAL CASH FLOW: Monthly cash flow x 12, accounting for vacancy
3. CAP RATE: Net operating income / purchase price
4. CASH-ON-CASH RETURN: Annual cash flow / total cash invested (down payment + closing costs + reno)
5. GROSS RENT MULTIPLIER: Purchase price / gross annual rent
6. 1% RULE CHECK: Does monthly rent equal at least 1% of purchase price?
7. 5-YEAR PROJECTION: Assuming [3%] annual rent increases and [3%] annual appreciation, project equity position and cash flow at year 5
8. RISK FACTORS: 3-4 specific risks for this property/market
9. VERDICT: One paragraph summary - is this a good investment and why/why not?

Present the numbers in a clean, scannable format. Show your math. Use tables where it helps clarity.

How to Use It

• Run this analysis for 2-3 properties side by side so the investor can compare options directly.
• Adjust the vacancy rate and maintenance estimates based on property age and condition - 5% vacancy and 1% maintenance are fine for a new build, but older properties need more conservative assumptions.
• Always present the analysis as a starting point for discussion, not a guarantee. Include a disclaimer that actual returns depend on market conditions and management.
• Use Claude for this prompt - its structured reasoning handles the multi-step calculations more reliably.

Example Output

The AI will produce a formatted investment analysis with a line-by-line cash flow breakdown, calculated returns across multiple metrics, a five-year projection showing equity and income growth, and a clear verdict on the investment. The output reads like a professional investment memo an investor can review with their accountant.