Multi-Variable Stress Test
Blooma's Multi-Variable Stress Test allows users to adjust revenue, expenses, cap rate, and vacancy 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 Summary.
Select 'View Complete Stress Test' to access all available options.
Click the drop down menu, highlighted in blue, to view the deal under high, medium, or low stress scenarios. Select 'Custom' from the dropdown to add your own revenue, expenses, cap rate, and vacancy variables.
Single Variable Stress Tests and Deal Breakpoints
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.
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 affect on the metric when adjusted in 2.5% increments. It is also clearly shown where the breakpoint is reached (graph is in red).