Property Investability Score

The framework from The Condo Trap. Rate any property across 7 risk dimensions. Know before you buy.

Important: This calculator is an educational tool only and does not constitute financial, investment, legal, or tax advice. Results are estimates based on user-provided inputs and general assumptions — they do not account for your individual financial situation, risk tolerance, or local market conditions. Always consult a licensed financial advisor, real estate attorney, or other qualified professional before making any property purchase, sale, or investment decision. Past performance and historical data referenced in this tool do not guarantee future results. The authors and publishers of this tool accept no liability for decisions made based on its output.

How It Works

1
Pick a starting point

Choose a city preset below to auto-fill typical values, or start from scratch.

2
Adjust the sliders

Move each slider left (more risky) or right (less risky). Don't overthink it — your gut is usually close.

3
Read your score

The panel on the right updates instantly. Scroll down to the True Cost Calculator for dollar estimates.

Quick Start — Choose a City

These presets load typical risk ratings for each city based on data from The Condo Trap. Adjust any slider after loading.

Property Details (optional)

Score Each Dimension

Rate each factor from 1 (highest risk) to 10 (lowest risk). Not sure? Click Scoring guide under any slider for help.

1

Energy Mandate Exposure

Is the city or state enacting building performance standards?

5
1 — Active BPS with fines (Denver, NYC, Boston) 10 — No mandates enacted or proposed
Scoring guide
  • 1-2: City has active BPS with escalating fines and near-term deadlines (Energize Denver, Local Law 97, BERDO)
  • 3-4: State or city has enacted BPS but deadlines are 3+ years out, or benchmarking-only requirements
  • 5-6: BPS proposed or under discussion; neighboring cities have enacted them
  • 7-8: No current BPS; state has no enabling legislation
  • 9-10: No mandates enacted, proposed, or likely based on political environment
2

Insurance Cost Trajectory

What is the market trend for property insurance in this area?

5
1 — Premiums tripled, carriers exiting 10 — Stable rates, strong carrier competition
Scoring guide
  • 1-2: Premiums up 100%+ in 3 years; carriers leaving market (coastal FL, LA, parts of CA)
  • 3-4: Premiums up 40-100%; post-Surfside structural inspection mandates increasing master policy costs
  • 5-6: Premiums rising 15-40% but multiple carriers still competing
  • 7-8: Modest increases (under 15%); no major natural disaster risk adjustments
  • 9-10: Stable or declining premiums; strong competition; low catastrophe risk zone
3

Tax Burden Trajectory

Unfunded pensions, metro districts, reassessment trends?

5
1 — Metro district + pension crisis (Chicago, Denver suburbs) 10 — Low taxes, fully funded pensions, no special districts
Scoring guide
  • 1-2: Metro district layered on top of county tax; unfunded pension ratio above 50%; recent reassessment spike
  • 3-4: Property taxes rising faster than inflation; pension underfunding above 30%; special taxing districts
  • 5-6: Taxes rising roughly at inflation; some pension pressure; no special districts
  • 7-8: Low effective tax rate; pensions well-funded (above 80%); homestead exemptions available
  • 9-10: No state income tax, low property tax, fully funded pensions, TABOR-style limits enforced
4

Environmental Risk

Radon, water quality, wildfire, flood, and air quality exposure?

5
1 — Multiple active risks (radon + PFAS + wildfire) 10 — No known environmental exposures
Scoring guide
  • 1-2: FEMA flood zone + wildfire risk + known PFAS contamination + radon zone 1
  • 3-4: Two or more risk factors present (e.g. radon zone + water quality issues); wildfire smoke days increasing
  • 5-6: One moderate risk factor; EWG tap water shows some contaminants above guidelines
  • 7-8: Minimal risk factors; clean water; no flood/fire zones; good air quality
  • 9-10: No FEMA flood zone, no wildfire risk, clean water, low radon, excellent AQI history
5

HOA / Association Health

Reserve fund percentage, assessment history, governance quality?

5
1 — Underfunded reserves, recent large assessments 10 — No HOA, or fully funded reserves
Scoring guide
  • 1-2: Reserve fund below 30%; special assessment in last 2 years exceeding $10K/unit; deferred maintenance backlog
  • 3-4: Reserve fund 30-50%; HOA fees rising 10%+/year; structural inspection required but not completed
  • 5-6: Reserve fund 50-70%; no recent assessments; fees rising at inflation
  • 7-8: Reserve fund above 70%; professional management; recent reserve study completed
  • 9-10: Single-family home with no HOA, or condo with reserve fund above 90% and no deferred maintenance
6

Local Regulatory Direction

New mandates, inspection requirements, rent control, zoning changes?

5
1 — Aggressive new mandates, inspections, rent control 10 — Property-owner-friendly regulatory environment
Scoring guide
  • 1-2: Multiple new mandates (structural inspections + BPS + rent control); city council actively expanding regulations
  • 3-4: New building codes or inspection mandates enacted in last 2 years; regulatory trend is toward more intervention
  • 5-6: Some regulatory activity but stable; mixed political signals
  • 7-8: No new mandates in recent years; regulatory environment stable or deregulating
  • 9-10: State preemption of local mandates; strong property rights protections; no rent control
7

Market Supply / Demand

Price-to-rent ratio, inventory levels, appreciation history, demand trends?

5
1 — Oversupplied, price-to-rent above 25x 10 — High demand, low supply, strong appreciation
Scoring guide
  • 1-2: Price-to-rent ratio above 25x; rising inventory; flat or declining prices; population outflow
  • 3-4: Price-to-rent 20-25x; supply building; appreciation below inflation
  • 5-6: Price-to-rent 15-20x; balanced market; appreciation roughly at inflation
  • 7-8: Price-to-rent 10-15x; limited supply; appreciation above inflation; net population inflow
  • 9-10: Price-to-rent below 10x; severe supply shortage; strong job growth and population inflow
35 / 70
Moderate Risk

Adjust the sliders to evaluate your property.

Breakdown

Energy Mandates
5
Insurance
5
Tax Burden
5
Environment
5
HOA Health
5
Regulatory
5
Market
5

Biggest Risk

The full scoring methodology, city-by-city benchmarks, and exit strategies are in The Condo Trap.

Get the Book (opens in new tab)

How to Read Your Score

7 – 25 High Risk

Carrying costs will likely erode all appreciation. Consider renting instead.

26 – 40 Elevated Risk

Significant headwinds. Proceed only with deep due diligence and a clear exit plan.

41 – 55 Moderate Risk

Some favorable factors, but watch the weak dimensions carefully.

56 – 70 Lower Risk

Favorable conditions across most dimensions. Standard due diligence applies.

For educational purposes only. Not financial, investment, legal, or tax advice. Consult a licensed financial advisor and perform your own due diligence before making any real estate decision.

True Cost & Property Discount Model

Everyone focuses on the mortgage payment. This calculator shows the other costs — the ones that never build equity. Enter your numbers, or use a city preset to start.

Purchase Details

$
%
%

Monthly Carrying Costs from HOA docs, tax records, and disclosures

$
Denver avg: $450
$
Denver avg: $350/mo
$
Denver post-2005: $175/mo
$
Denver avg: $150/mo
$
Amortized: $200/mo avg
$
Energize Denver: $125/mo
$
Denver avg: $275/mo
$
Recommended: $175/mo

Rent vs. Buy Comparison

$
%
%
Monthly Carrying Cost $1,900 Zero equity. Zero mortgage. Just the cost of owning.
Total Monthly Cost (with mortgage) $4,294 Mortgage + all carrying costs
Equity Conversion Rate 11% Only $467/mo builds equity. The rest is sunk cost.
Price-to-Rent Ratio 18.5x Above 15x generally favors renting

10-Year Projection

If You Buy $153,000 Net equity position
vs.
If You Rent + Invest $401,000 Net investable assets
The Hidden Discount -$248,000 Renting + investing builds $248K more wealth over 10 years. This is the true cost of the carrying cost trap.
Annual Non-Equity Cost $45,924 Money that exits your net worth every year

The Condo Trap provides the complete methodology, city-by-city benchmarks, and exit strategies for every outcome.

Get the Book (opens in new tab)

Get the Full Framework

The Condo Trap contains the complete PIS methodology with city-by-city data, benchmark scores, and exit strategies for every outcome.

35
Moderate Risk PIS: 35 / 70
Carrying Cost $1,900/mo
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Last updated: April 2026