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Lease-Up Burn Rate Calculator

Lease-up periods burn cash monthly. This calculator tracks burn rate against reserves.

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Monthly burn

$90,000

Runway months

1 yr 8 mo

Total monthly out

$130,000

How the math works

Burn = debt service + opex − leased rent. Runway = reserve ÷ burn.

Update burn monthly. If runway < 12 months, act immediately: capital call, bridge debt, or faster absorption push. Running into default mode is devastating to equity value.

How to Use

  1. Enter monthly debt service.
  2. Enter monthly opex.
  3. Enter rent from leased units.
  4. Enter interest reserve.
  5. Read burn rate and runway.

Frequently Asked Questions

Typical burn?

100-200k/month for a 150-unit lease-up. Scales with debt service and expense base. Early months: nearly full burn. Late months: near break-even.

Reserve?

Lender typically requires 12-18 months of debt service reserve. Underwrite for 24+ months if possible. Running out of reserve triggers cash trap or default.

Forecasting?

Project burn monthly using leasing velocity × economic rent. Adjust every 30 days based on actual. Overestimate velocity = run out of cash. Plan for 20% slower than proforma.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.

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