How the Deal Score Works
Understanding our investment scoring methodology
Important: Deal scores are calculated using publicly standard investment metrics: estimated cash flow, capitalization rate, cash-on-cash return, price-to-rent ratio, and secondary suite potential. These scores measure investment return potential for rental property investors. They do not assess property quality, condition, neighbourhood desirability, appreciation potential, or suitability for owner-occupants. A property with a low investment score may be an excellent home — it simply means the current price-to-rent ratio produces lower cash returns at today's mortgage rates. All estimates are approximate and should not be relied upon for purchase decisions without independent professional advice.
What is a Deal Score?
Every property listed on MississaugaInvestor.ca receives a deal score from 1 to 10. This score represents the estimated investment return potential of the property based on its current asking price, estimated rental income, and standard investment metrics used by real estate investors.
Scoring Components
The deal score is a weighted combination of four key investment factors:
Cash Flow Analysis
30% weightEstimates monthly rental income minus mortgage payments, property taxes, insurance, maintenance, and vacancy costs. Properties with positive cash flow score higher.
Yield / Cap Rate
25% weightNet operating income divided by property price. Higher cap rates indicate better return on investment relative to the purchase price.
Value Assessment
25% weightPrice-to-rent ratio and comparison to area averages. Properties priced below area norms relative to their rental potential score higher.
Market Signals
20% weightDays on market and price reductions. Properties that have been listed longer or have had price drops may represent negotiation opportunities.
Score Ranges
Strong Deal
Good Deal
Average
Below Avg.
Important Limitations
- Scores are based on estimated rental income, not actual rents.
- Property condition, renovation costs, and maintenance requirements are not factored in.
- Neighbourhood desirability and appreciation potential are not measured.
- Scores assume standard financing terms and may not reflect your specific mortgage rates.
- This is not an appraisal or broker price opinion.
- Always conduct your own due diligence and consult professionals before investing.
This score measures estimated investment return potential only — not property quality, condition, or desirability. Scores are based on mathematical calculations using list price, estimated rental income, and operating costs. A low investment score does not mean the property is undesirable — it means the current asking price relative to estimated rental income produces lower investor returns. Scores update as prices change. This is not an appraisal. Hamza Nouman, Sales Representative, Royal LePage Signature Realty, Brokerage.