Several features in TROV Blueprint are not immediately visible from the surface of the tool. This section documents them explicitly so investors understand what is being modeled and why it matters.
FHA Loan Type Defaults to House Hacking Mode
When the FHA loan type is selected the tool automatically assumes the owner will occupy one unit of the property. Rental income used for qualification is calculated from the non-owner units only. This reflects how FHA owner-occupied financing actually works for 2-4 unit properties and eliminates a common modeling error where investors accidentally count all unit income including the unit they plan to live in. Most tools do not model FHA financing at this level of specificity — they treat all loan types as generic financing inputs.
FHA Self-Sufficiency Test Activates Automatically
For properties with 3 or 4 units using FHA financing the self-sufficiency test activates automatically without any user input. The tool calculates whether 75% of gross market rent from all units including the owner-occupied unit covers the full PITI plus mortgage insurance payment per HUD Handbook 4000.1. The result is displayed as a clear pass or fail. This test determines whether a 3-4 unit property can actually close with FHA financing — failing it means the deal cannot proceed under FHA regardless of the borrower's income or credit. No other residential underwriting software currently models this automatically.
DSCR Loan Sizing Uses Three Constraints Simultaneously
Most tools let you input a loan amount or a target DSCR ratio. TROV instead sizes the DSCR loan the way a non-QM lender actually does — by computing the maximum loan amount under three separate constraints simultaneously: a DSCR floor, an LTV cap, and a debt yield minimum. The actual loan amount is the minimum of all three and the tool identifies which constraint is the binding factor. This tells you not just what loan you can get but exactly why that is the limit — which is what a lender will tell you when they decline your requested loan amount.
PMI and MIP Cancel Mid-Amortization
For Conventional loans PMI cancels automatically in the month when the loan balance falls to 80% of the original purchase price. This cancellation is reflected in the actual monthly cash flow projections and annual proforma rather than being estimated or ignored across the full hold period.
For FHA loans MIP cancels after 132 months provided the original loan-to-value ratio was 90% or below at origination. FHA loans originated with an original LTV above 90% carry MIP for the life of the loan. Both cancellation events update the cash flow projections automatically in the month they occur.
Most tools either ignore mortgage insurance entirely or apply it as a flat cost for the full hold period which overstates long-term costs and understates returns on deals held beyond the cancellation point.
Dual Property Valuation Methods
The Property Value module offers two distinct methods for tracking property value across the hold period rather than forcing a single approach. The cap rate method derives the property value each year by dividing that year's projected NOI by the exit cap rate — this ties value directly to operating performance and market yields, meaning the property is worth more when rents grow and expenses are controlled, which is how buyers and lenders actually price income-producing properties. The appreciation rate method compounds the original purchase price annually at a fixed rate — simpler but useful for stress testing value assumptions independently of operating performance. Both methods feed live into the LTV calculations on the amortization schedule, the refinance engine constraint sizing, the equity flow era separation, and the exit proceeds calculation. Choosing the wrong method or defaulting to one without understanding the difference can meaningfully change every downstream return metric — TROV surfaces both explicitly so the investor makes a conscious choice rather than accepting a hidden assumption.
Two Completely Independent Sensitivity Systems
The Screener and the Underwriting engine each have their own independent sensitivity system with Best, Base, Worst, and Stress scenarios. The Stage 1 system adjusts acquisition-level variables — rent, vacancy, interest rate, insurance, taxes, and variable expense multipliers. The Stage 2 system adjusts hold-period variables — rent growth rate, individual expense growth rates, exit cap rate, refinance rate, refinance LTV, refinance closing costs, and discount rate. These systems operate independently so you can stress test your entry assumptions separately from your long-term hold assumptions without the two interfering with each other. No other residential underwriting tool currently implements dual independent sensitivity systems at this level.
The Refinance Engine Cascades Through All Downstream Calculations
The refinance event is not a static input. When you set a refinance trigger the tool looks up the actual property value at that exact month from the live proforma, looks up the actual remaining loan balance from the amortization schedule at that month, sizes the replacement loan using the same three-constraint logic used for DSCR acquisition, computes net cash-out after paying off the old loan balance and all closing costs, and then cascades the replacement loan through the debt schedule, proforma, equity flow, capital recovery, and returns calculations. Every downstream number updates automatically to reflect the actual post-refinance reality. Changing any upstream assumption — rent growth, expense growth, property value method — automatically flows through to the refinance event and all outputs beyond it.
Dual IRR Distinction
The Returns module shows two separate IRR calculations rather than a single blended number. Leveraged IRR includes the complete equity cashflow stream — all operating cashflows, refinance proceeds, and sale proceeds. IRR from Operations Only uses just the annual operating cashflows and excludes both the refinance cash-out event and the exit sale proceeds. This distinction matters because it separates how well the property performs as an income-generating asset from how much the returns depend on financing strategy and exit timing. A deal with a strong operations IRR is fundamentally sound. A deal where the leveraged IRR is high but the operations IRR is low is depending heavily on the exit or the refinance to generate returns — a meaningful risk distinction that a single blended IRR number hides.