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Stress Test Analysis

Nick Rice
  • Updated

Multi-Variable Stress Test Analysis

Single-Variable Stress Test Analysis

 

Multi-Variable Stress Test Analysis

Blooma’s Multi-Variable Stress Test allows users to adjust Revenue, Expenses, Cap Rate, Vacancy and Interest Rate to understand the impact on LTV, Debt Yield, and DSCR. To access Blooma’s Multi-Variable Stress Test navigate to the bottom of the Deal Page. You can edit what you see from here by selecting “Custom Stress Test” from the drop down menu or, select “View Complete Stress Test” to access all available options.

Core_Stress_Test.png

 

Once you’ve clicked “View Complete Stress Test” you can again select “Custom Stress Test” and edit Revenue, Expenses, Cap Rate, Vacancy, and Interest Rate. 

 

Single-Variable Stress Test Analysis

Once you’ve clicked “View Complete Stress Test” you will see the Multi-Variable Test as well as three Single-Variable Tests. The Single-Variable Stress Tests show how much property value, income, expenses, vacancy, and cap rate can change before the value in question reaches it’s breakpoint; either LTV, Debt Yield, or DSCR. There is a separate section and graph for all three. Click the pencil to edit your threshold values. 

Core_Stress_Test_2.png

The breakpoint values display the amount the value in question can be altered before the deal breakpoint is reached for the metric in question

 

The graph displays each value and it’s effect on the metric when adjusted in 2.5% increments. It is also clearly shown where the breakpoint is reached (in red on the graph).

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