The deal analyser is one of the most powerful tools in PSEngine. It allows you to quickly establish the financial viability of a property for the Flip/BBR, HMO and Buy To Let  scenarios, in a fraction of the time it would take traditionally. 


This documentation will take you all three deal scenarios, and how to export the scenario for investors. But will first start with the Deal Analyser Config.


The Deal Analyser Config allows you to set default values for fields such as your standard deposit, your standard Bridge rate and legal costs. Saving you time and from entering repetitive data.

The Deal Analyser Config also allows you to set the Stamp duty, Land Transaction Tax and Land & Buildings Transaction Tax rates. Allowing accurate calculations in the Deal Analyser costings.



There are some universal constants within the deal analyser pages. At the bottom of the deal analyser config we have both the template save/load bar and the scenario choice list. 


Bottom Left and Bottom Right.


Template:


The template system allows you to save, load and delete templates. Located in the bottom left. As we will see throughout the article, the analyser requires values to be entered. If some of these values are used enough, then creating a template can save you time. 


Creating a template is simple, once you have set your values, just click the save icon. A small window will appear so you can set the name of the template. Once saved you can choose between multiple templates with the drop down box, and then click the load icon to populate the deal analyser with those values.


Scenario choice:


The scenario used for your deal analysis can be changed via the scenario choice drop down box. Located in the bottom right, this allows you to choose between the three set scenarios. Flip / BBR, BTL and HMO. 


Simply select the scenario you are looking for, and the cash out side of the deal analyser will change to reflect this choice.



Cash In:


The cash in screen is universal across all three scenarios, only changing form when a cash only purchase option is selected. 

The light and dark grey windows highlight the primary areas filled in with the deal analyser, with only stamp duty and legal costs lower down. Demonstrating the fields with cash only selected (right) and deselected (left).


From here you will need to fill in the data as follows (all fields that can be set by default in deal analyser config are highlighted in orange):


  • Purchase Price - Automatically populated with the properties purchase price, this should be filled with the target purchase price. I.e. The purchase price here of £310k would be replaced with the target price of £260k.
  • Deposit - The typical deposit laid on a property when conducting a purchase. 
  • Bridge Rate - The typical bridge rate for bridging loans. Used mainly when conducting non-mortgage or fast purchases. Varies widely from provider and scenario. Hence, you can set your own percentage.
  • Bridge LTV - The loan to value percentage used for your purchase. If the bridging LTV and deposit percentage do not calculate to 100%, the deposit is raised until the sum balances out.  
  • Mortgage Rate - The typical mortgage rate for BTL/HMO scenarios. The mortgage rates varies widely from provider and scenario. Hence, you can set your own percentage.
  • Mortgage Term - The typical mortgage term when buying an investment property. Up to 35 years. Depending on your BTL/HMO requirements, you can change the term here., 
  • Bridging Term - 0-36 months. How long you will borrow the bridging loan for.


Now for the primary Cash In calculations. Please note that the toggle "Bridging Purchase" and "Mortgage Purchase" only affect the Cash Out calculations. 


  • Deposit percentage - Percentage of deposit calculated from Purchase Price. The deposit percentage can be higher than set in Deposit. This happens when the Bridge LTV and Deposit percentage do not equal 100% In this scenario, the deposit amount is raised to balance the sum out. 
    This is field is removed from display and calculations when a Cash Purchase Only scenario is selected. 
  • Stamp Duty - The Stamp Duty Land Tax / Land Transaction Tax / Land and Buildings Transaction Tax bracket applied to the purchase price. 
  • Legals - The conveyancing and other legal costs. Varies from location and provider
  • Refurb Costs - The sum total of refurbishment costs for the scenario, determined from property condition and finish to be achieved.
  • Other Costs - Incidental costs / travel. etc. 
  • Total Cash In - The sum total of all cash in fields.



Cash Out:


The cash out screen varies depending on the three different scenarios. Below is a description of each cash out screen for Flip/BBR, BTL and HMO scenarios.


Flip/BBR:


  • Agent Fees - Depending on property value and agent, of course, but this is the cost to sell the property through and agent.
  • Voids / Maintenance pot - Incidental costs during the refurb, even including costs such as coffees or pasties for the builders.
  • Bridging Fees - The calculated total of the Bridge LTV over the Bridging term. Removed when using a cash only or mortgage toggles. 
  • Total Insurance Payments - Insurance for the property during ownership varies depending on provider and value.
  • Other payments - Gas, Water, Council Tax, Electricity etc.
  • Total Cash Out - the amalgamated outgoings during the renovation to resale period.
  • Revaluation - The expected selling price of the property.
  • Pre-Tax profit - Calculated profit from the scenario.


The "Will you refinance" toggle allows you to calculate an exit strategy as a BTL, based upon the mortgage settings in the deal analyser config, should the investor wish to keep the property. (Fields set in orange are found in the deal analyser config)

  • Loan amount - Calculated loan amount required.
  • Annual Interest Rate - The mortgage rate set by your provider. Set in deal analyser config or in Cash In
  • Term Length - The mortgage set term, in years.
  • Monthly Payment - The calculated monthly repayments.
  • Money Left In - How much of the investors capital needs to remain "in the property deal" in order to keep the property.


Buy To Let (BTL):




  • Rent - Rental income of the property, per month.
  • Next to your Rent is the Rental calculator. This compares this properties against similar in the area to approximate max, average and minimum rental price. 
  • Agent Fees - Management fees of letting through an agent in percentage of rent.
  • Voids / Maintenance Pot - Money set aside to cover maintenance costs and tenancy voids in percentage of rent. 
  • Bridging fees - Calculated total of the Bridge LTV during ownership. If you have selected mortgage or cash only in the Cash In, then this result is removed. 
  • Monthly Insurance Payments - Per month insurance payment.
  • Monthly Other Payments - Mortgage payments, leaseholder costs, ground rent. etc. 
  • Gross Yield - The annual income generated by the property, divided by its price.
  • Net Yield - The annual profit (the income minus costs) generated by the property, divided by it's price.
  • Cashflow / Month - The rent minus costs.
  • Total Cash Out - The cost of outgoings each month. 
  • Revaluation - The new value of the property.
  • ROI - Return on Investment- The investment is the money you've put into a deal (including borrowing). The return is the yearly percentage of cash you have returned to you. 
  • ROCE - Return on Capital Employed - The yearly rate of return for any money left in the deal. If there is no money left in, then the return is often referred to as infinite. 


The "Will you refinance" toggle allows you to calculate an exit strategy as a BTL, based upon the mortgage settings in the deal analyser config, should the investor wish to keep the property. (Fields set in orange are found in the deal analyser config)

  • Loan amount - Calculated loan amount required
  • Annual Interest Rate - The set mortgage rate
  • Term Length - The set term in years
  • Monthly Payment - The calculated monthly repayments
  • Money Left In - How much of the investors capital needs to remain "in the property deal" in order to keep the property


House in Multiple Occupancy (HMO):



  • Number of Rooms - Number of rooms to be let in the property
  • Rent per  Room - Expected income per room
  • Gross Rent - The total rental income of the property at this point, without factoring in costs.
  • Will you self manage? - Removes the "agent fees" field from view and calculations
  • Agent Fees - Management fees of letting through an agent in percentage of Rent
  • Voids / Maintenance Pot - Money set aside to cover maintenance costs and tenancy voids
  • Bills / Room - The money set aside for bills per room. Covering costs such as electricity, water. Etc. 
  • Total Bills - The combined cost of bills for all rooms in the properties
  • Monthly Insurance Payments - Per month insurance payment
  • Monthly Other Payments - Mortgage payments, leaseholder costs, ground rent. Etc.
  • Cashflow / Month - The rent minus costs
  • Revaluation - The new value of the property
  • ROI - Return on Investment - The investment is the money you've put into a deal (including borrowing). The return is the yearly percentage of cash you have returned to you. 
  • ROCE - Return on Capital Employed - The yearly rate of return for any money left in the deal. If there is no money left in, then the return is often referred to as infinite. 


The "Will you refinance" toggle allows you to calculate an exit strategy as a BTL, based upon the mortgage settings in the deal analyser config, should the investor wish to keep the property. (Fields set in orange are found in the deal analyser config)

  • Loan amount - Calculated loan amount required
  • Annual Interest Rate - The set mortgage rate
  • Term Length - The set term in years
  • Monthly Payment - The calculated monthly repayments
  • Money Left In - How much of the investors capital needs to remain "in the property deal" in order to keep the property



Deal Analyser Export:


Once you have calculated your deal, PSEngine offers the facility to export these calculations to a .pdf document. This can be highly useful when approaching investors or mortgage brokers, allowing you to demonstrate the financial viability of your scenario. 


Firstly, you may have noticed the tick boxes next to each field:

With the export feature, it will export all the data that is ticked. Even if the data is not relevant to your scenario. So it is best to untick any data you do not wish to see on the .pdf document. 


So once you have selected all the fields you wish to see on the document, it's time to generate it. You will notice the export button on the bottom right of the function page.

Once clicked, it will load a save window and allow you to choose the directory your .pdf export is saved. Eventually this will leave you with a .pdf export, similar to this: