Illustrative model. This pressure-test runs on a simplified, placeholder underwriting engine — loan sizing, equity timing and the IRR waterfall are stand-ins, not your funded terms. Use it to see how a deal bends under stress, not as a substitute for a fully underwritten pro forma. Talk to BUILDLAB to model your actual deal.
Pro Forma Pressure Test
Untitled Project
80 units · 15-yr
COVENANT BREACH
Sources & uses
Units & income
Financing
Growth & exit
Recommendation
Restructure / pass
COVENANT BREACH
Min DSCR 0.86× vs 1.15× floor · $1.79M surplus · 0% of stress scenarios clear. Absorbs a 6.4% cost overrun before it breaks.
Debt $12.75M · LP equity $11.04M · Soft $6.00M · per-unit TDC $350k
Min DSCR
0.86×
floor 1.15 · -0.29
Funding gap
−$1.79M
fully sourced
Investor IRR
0.4%
hurdle 6.0%
P(breach)
100%
4,000 sims
Tornado — driver sensitivity
Each bar spans the metric from −20% to +20% of the driver. Longest bar = sharpest knife.
Monte Carlo — min DSCR distribution
P5 0.45× · median 0.75× · P95 1.01×
Operating waterfall — DSCR & cash flow
DSCR on the left, annual cash flow on the right. Year-1 reflects the lease-up haircut.
- DSCR
- Cash flow
Scenarios — bundled stress
Several drivers move together. This is where compounding failures surface that a single-variable sweep misses.
| Scenario | Min DSCR | Funding gap | Investor IRR | Verdict |
|---|---|---|---|---|
| Base | 0.86× | −$1.79M | 0.4% | BREACH |
| Downside | 0.57× | −$1.17M | -2.6% | BREACH |
| Severe | 0.29× | $1.79M | -5.3% | BREACH |
Loan sizing, equity timing and the IRR waterfall use placeholder logic — swap in your spec's math, then validate against a hand-underwritten deal before trusting any output.
Ready to Work, Let's Chat
Our team of experts is ready to collaborate with you every step of the way, from initial consultation to implementation.