CalculateRealEstateROI

Methodology

Capital Allocation Methodology

Capital Allocation scores efficiency on a 0–100 scale by comparing market yield to your target cap rate and assessing portfolio LTV, reserves, and risk tolerance.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Allocation buckets

Default split: 62% acquisitions, 14% reserves, 12% debt paydown, 12% opportunity capital. Risk tolerance and current LTV shift the split toward reserves or paydown as needed.

Bottleneck detection

The engine surfaces the single largest gap (reserves, deploy speed, or yield gap) and recommends the next action rather than a generic allocation table.