RealVest Real Estate MCP Server

export class PropertyExpenseTracker { getSchema() { return { type: 'object', properties: { property_details: { type: 'object', properties: { property_id: { type: 'string' }, property_name: { type: 'string' }, property_type: { type: 'string', enum: ['single_family', 'duplex', 'triplex', 'fourplex', 'small_multifamily', 'large_multifamily', 'commercial', 'mixed_use'] }, total_units: { type: 'integer', minimum: 1, maximum: 1000 }, acquisition_date: { type: 'string', format: 'date' }, acquisition_cost: { type: 'number', minimum: 0 }, current_market_value: { type: 'number', minimum: 0 } }, required: ['property_id', 'property_name', 'property_type', 'total_units'] }, tracking_period: { type: 'object', properties: { start_date: { type: 'string', format: 'date' }, end_date: { type: 'string', format: 'date' }, period_type: { type: 'string', enum: ['monthly', 'quarterly', 'annually', 'custom'] } }, required: ['start_date', 'end_date'] }, expense_categories: { type: 'object', properties: { operating_expenses: { type: 'object', properties: { property_management: { type: 'number', minimum: 0 }, maintenance_repairs: { type: 'number', minimum: 0 }, utilities: { type: 'number', minimum: 0 }, landscaping: { type: 'number', minimum: 0 }, pest_control: { type: 'number', minimum: 0 }, cleaning: { type: 'number', minimum: 0 }, security: { type: 'number', minimum: 0 }, other_operating: { type: 'number', minimum: 0 } } }, fixed_expenses: { type: 'object', properties: { property_taxes: { type: 'number', minimum: 0 }, property_insurance: { type: 'number', minimum: 0 }, hoa_fees: { type: 'number', minimum: 0 }, licenses_permits: { type: 'number', minimum: 0 } } }, capital_expenses: { type: 'object', properties: { major_repairs: { type: 'number', minimum: 0 }, renovations: { type: 'number', minimum: 0 }, appliance_replacement: { type: 'number', minimum: 0 }, flooring: { type: 'number', minimum: 0 }, roofing: { type: 'number', minimum: 0 }, hvac: { type: 'number', minimum: 0 }, plumbing: { type: 'number', minimum: 0 }, electrical: { type: 'number', minimum: 0 }, other_capital: { type: 'number', minimum: 0 } } }, financing_costs: { type: 'object', properties: { mortgage_interest: { type: 'number', minimum: 0 }, loan_fees: { type: 'number', minimum: 0 }, refinancing_costs: { type: 'number', minimum: 0 } } }, professional_services: { type: 'object', properties: { accounting: { type: 'number', minimum: 0 }, legal: { type: 'number', minimum: 0 }, real_estate_agent: { type: 'number', minimum: 0 }, property_inspector: { type: 'number', minimum: 0 }, consultant: { type: 'number', minimum: 0 } } }, marketing_leasing: { type: 'object', properties: { advertising: { type: 'number', minimum: 0 }, listing_fees: { type: 'number', minimum: 0 }, tenant_screening: { type: 'number', minimum: 0 }, leasing_commissions: { type: 'number', minimum: 0 } } } } }, income_data: { type: 'object', properties: { rental_income: { type: 'number', minimum: 0 }, late_fees: { type: 'number', minimum: 0 }, pet_fees: { type: 'number', minimum: 0 }, parking_fees: { type: 'number', minimum: 0 }, laundry_income: { type: 'number', minimum: 0 }, other_income: { type: 'number', minimum: 0 } } }, analysis_options: { type: 'object', properties: { expense_breakdown: { type: 'boolean' }, benchmark_comparison: { type: 'boolean' }, trend_analysis: { type: 'boolean' }, budget_variance: { type: 'boolean' }, tax_deduction_analysis: { type: 'boolean' }, cash_flow_impact: { type: 'boolean' }, expense_forecasting: { type: 'boolean' } } }, budget_targets: { type: 'object', properties: { target_operating_ratio: { type: 'number', minimum: 0, maximum: 100 }, target_maintenance_percentage: { type: 'number', minimum: 0, maximum: 50 }, target_capex_reserve: { type: 'number', minimum: 0 }, target_vacancy_rate: { type: 'number', minimum: 0, maximum: 100 } } } }, required: ['property_details', 'tracking_period', 'expense_categories'] }; } calculate(params) { const { property_details, tracking_period, expense_categories, income_data = {}, analysis_options = {}, budget_targets = {} } = params; // Calculate total expenses by category const expenseAnalysis = this.analyzeExpenses(expense_categories, property_details); // Calculate income if provided const incomeAnalysis = this.analyzeIncome(income_data, property_details); // Calculate financial metrics const financialMetrics = this.calculateFinancialMetrics( expenseAnalysis, incomeAnalysis, property_details ); // Generate expense breakdown const expenseBreakdown = analysis_options.expense_breakdown ? this.generateExpenseBreakdown(expenseAnalysis, financialMetrics) : null; // Benchmark comparison const benchmarkComparison = analysis_options.benchmark_comparison ? this.performBenchmarkComparison(expenseAnalysis, property_details) : null; // Trend analysis placeholder (would need historical data) const trendAnalysis = analysis_options.trend_analysis ? this.generateTrendAnalysis(expenseAnalysis, tracking_period) : null; // Budget variance analysis const budgetVariance = analysis_options.budget_variance && Object.keys(budget_targets).length > 0 ? this.analyzeBudgetVariance(expenseAnalysis, financialMetrics, budget_targets) : null; // Tax deduction analysis const taxAnalysis = analysis_options.tax_deduction_analysis ? this.analyzeTaxDeductions(expenseAnalysis, property_details) : null; // Cash flow impact const cashFlowImpact = analysis_options.cash_flow_impact ? this.analyzeCashFlowImpact(expenseAnalysis, incomeAnalysis) : null; // Expense forecasting const expenseForecasting = analysis_options.expense_forecasting ? this.forecastExpenses(expenseAnalysis, property_details) : null; // Generate recommendations const recommendations = this.generateRecommendations( expenseAnalysis, financialMetrics, benchmarkComparison, property_details ); return { property_summary: { property_id: property_details.property_id, property_name: property_details.property_name, property_type: property_details.property_type, total_units: property_details.total_units, tracking_period: tracking_period }, expense_analysis: expenseAnalysis, income_analysis: incomeAnalysis, financial_metrics: financialMetrics, expense_breakdown: expenseBreakdown, benchmark_comparison: benchmarkComparison, trend_analysis: trendAnalysis, budget_variance: budgetVariance, tax_analysis: taxAnalysis, cash_flow_impact: cashFlowImpact, expense_forecasting: expenseForecasting, recommendations }; } analyzeExpenses(expenseCategories, propertyDetails) { const operatingExpenses = this.sumExpenseCategory(expenseCategories.operating_expenses || {}); const fixedExpenses = this.sumExpenseCategory(expenseCategories.fixed_expenses || {}); const capitalExpenses = this.sumExpenseCategory(expenseCategories.capital_expenses || {}); const financingCosts = this.sumExpenseCategory(expenseCategories.financing_costs || {}); const professionalServices = this.sumExpenseCategory(expenseCategories.professional_services || {}); const marketingLeasing = this.sumExpenseCategory(expenseCategories.marketing_leasing || {}); const totalExpenses = operatingExpenses + fixedExpenses + capitalExpenses + financingCosts + professionalServices + marketingLeasing; const expensePerUnit = totalExpenses / propertyDetails.total_units; return { total_expenses: totalExpenses, expense_per_unit: expensePerUnit, operating_expenses: operatingExpenses, fixed_expenses: fixedExpenses, capital_expenses: capitalExpenses, financing_costs: financingCosts, professional_services: professionalServices, marketing_leasing: marketingLeasing, category_breakdown: { operating_expenses: this.calculateCategoryBreakdown(expenseCategories.operating_expenses || {}, totalExpenses), fixed_expenses: this.calculateCategoryBreakdown(expenseCategories.fixed_expenses || {}, totalExpenses), capital_expenses: this.calculateCategoryBreakdown(expenseCategories.capital_expenses || {}, totalExpenses), financing_costs: this.calculateCategoryBreakdown(expenseCategories.financing_costs || {}, totalExpenses), professional_services: this.calculateCategoryBreakdown(expenseCategories.professional_services || {}, totalExpenses), marketing_leasing: this.calculateCategoryBreakdown(expenseCategories.marketing_leasing || {}, totalExpenses) } }; } analyzeIncome(incomeData, propertyDetails) { const rentalIncome = incomeData.rental_income || 0; const otherIncome = (incomeData.late_fees || 0) + (incomeData.pet_fees || 0) + (incomeData.parking_fees || 0) + (incomeData.laundry_income || 0) + (incomeData.other_income || 0); const totalIncome = rentalIncome + otherIncome; const incomePerUnit = totalIncome / propertyDetails.total_units; return { total_income: totalIncome, rental_income: rentalIncome, other_income: otherIncome, income_per_unit: incomePerUnit, income_breakdown: { rental_income: { amount: rentalIncome, percentage: totalIncome > 0 ? (rentalIncome / totalIncome) * 100 : 0 }, late_fees: { amount: incomeData.late_fees || 0, percentage: totalIncome > 0 ? ((incomeData.late_fees || 0) / totalIncome) * 100 : 0 }, pet_fees: { amount: incomeData.pet_fees || 0, percentage: totalIncome > 0 ? ((incomeData.pet_fees || 0) / totalIncome) * 100 : 0 }, parking_fees: { amount: incomeData.parking_fees || 0, percentage: totalIncome > 0 ? ((incomeData.parking_fees || 0) / totalIncome) * 100 : 0 }, laundry_income: { amount: incomeData.laundry_income || 0, percentage: totalIncome > 0 ? ((incomeData.laundry_income || 0) / totalIncome) * 100 : 0 }, other_income: { amount: incomeData.other_income || 0, percentage: totalIncome > 0 ? ((incomeData.other_income || 0) / totalIncome) * 100 : 0 } } }; } calculateFinancialMetrics(expenseAnalysis, incomeAnalysis, propertyDetails) { const netOperatingIncome = incomeAnalysis.total_income - expenseAnalysis.operating_expenses - expenseAnalysis.fixed_expenses; const totalCashFlow = netOperatingIncome - expenseAnalysis.financing_costs; const operatingExpenseRatio = incomeAnalysis.total_income > 0 ? ((expenseAnalysis.operating_expenses + expenseAnalysis.fixed_expenses) / incomeAnalysis.total_income) * 100 : 0; const capexAsPercentageOfIncome = incomeAnalysis.total_income > 0 ? (expenseAnalysis.capital_expenses / incomeAnalysis.total_income) * 100 : 0; let capRate = 0; if (propertyDetails.current_market_value && propertyDetails.current_market_value > 0) { capRate = (netOperatingIncome * 12 / propertyDetails.current_market_value) * 100; // Annualized } return { net_operating_income: netOperatingIncome, total_cash_flow: totalCashFlow, operating_expense_ratio: operatingExpenseRatio, capex_percentage: capexAsPercentageOfIncome, cap_rate: capRate, expense_per_unit: expenseAnalysis.expense_per_unit, income_per_unit: incomeAnalysis.income_per_unit, cash_flow_per_unit: totalCashFlow / propertyDetails.total_units }; } sumExpenseCategory(category) { return Object.values(category).reduce((sum, value) => sum + (value || 0), 0); } calculateCategoryBreakdown(category, totalExpenses) { const categoryTotal = this.sumExpenseCategory(category); const breakdown = {}; for (const [key, value] of Object.entries(category)) { breakdown[key] = { amount: value || 0, percentage_of_category: categoryTotal > 0 ? ((value || 0) / categoryTotal) * 100 : 0, percentage_of_total: totalExpenses > 0 ? ((value || 0) / totalExpenses) * 100 : 0 }; } return { category_total: categoryTotal, percentage_of_total_expenses: totalExpenses > 0 ? (categoryTotal / totalExpenses) * 100 : 0, items: breakdown }; } generateExpenseBreakdown(expenseAnalysis, financialMetrics) { const breakdown = { total_expenses: expenseAnalysis.total_expenses, expense_per_unit: expenseAnalysis.expense_per_unit, expense_categories: [ { category: 'Operating Expenses', amount: expenseAnalysis.operating_expenses, percentage: expenseAnalysis.total_expenses > 0 ? (expenseAnalysis.operating_expenses / expenseAnalysis.total_expenses) * 100 : 0, description: 'Day-to-day operational costs' }, { category: 'Fixed Expenses', amount: expenseAnalysis.fixed_expenses, percentage: expenseAnalysis.total_expenses > 0 ? (expenseAnalysis.fixed_expenses / expenseAnalysis.total_expenses) * 100 : 0, description: 'Taxes, insurance, and other fixed costs' }, { category: 'Capital Expenses', amount: expenseAnalysis.capital_expenses, percentage: expenseAnalysis.total_expenses > 0 ? (expenseAnalysis.capital_expenses / expenseAnalysis.total_expenses) * 100 : 0, description: 'Major improvements and replacements' }, { category: 'Financing Costs', amount: expenseAnalysis.financing_costs, percentage: expenseAnalysis.total_expenses > 0 ? (expenseAnalysis.financing_costs / expenseAnalysis.total_expenses) * 100 : 0, description: 'Mortgage interest and loan-related costs' }, { category: 'Professional Services', amount: expenseAnalysis.professional_services, percentage: expenseAnalysis.total_expenses > 0 ? (expenseAnalysis.professional_services / expenseAnalysis.total_expenses) * 100 : 0, description: 'Legal, accounting, and consulting fees' }, { category: 'Marketing & Leasing', amount: expenseAnalysis.marketing_leasing, percentage: expenseAnalysis.total_expenses > 0 ? (expenseAnalysis.marketing_leasing / expenseAnalysis.total_expenses) * 100 : 0, description: 'Tenant acquisition and retention costs' } ] }; return breakdown; } performBenchmarkComparison(expenseAnalysis, propertyDetails) { // Industry benchmarks by property type (per unit annually) const benchmarks = { single_family: { operating_expenses: 3600, maintenance_percentage: 8, capex_percentage: 5, management_percentage: 10 }, duplex: { operating_expenses: 3200, maintenance_percentage: 7, capex_percentage: 5, management_percentage: 9 }, triplex: { operating_expenses: 2800, maintenance_percentage: 6, capex_percentage: 4, management_percentage: 8 }, fourplex: { operating_expenses: 2600, maintenance_percentage: 6, capex_percentage: 4, management_percentage: 8 }, small_multifamily: { operating_expenses: 2400, maintenance_percentage: 5, capex_percentage: 4, management_percentage: 7 }, large_multifamily: { operating_expenses: 2200, maintenance_percentage: 5, capex_percentage: 3, management_percentage: 6 }, commercial: { operating_expenses: 2000, maintenance_percentage: 4, capex_percentage: 3, management_percentage: 5 }, mixed_use: { operating_expenses: 2300, maintenance_percentage: 5, capex_percentage: 4, management_percentage: 6 } }; const propertyBenchmark = benchmarks[propertyDetails.property_type] || benchmarks.single_family; const annualExpensePerUnit = expenseAnalysis.expense_per_unit * 12; // Assuming monthly tracking return { property_type: propertyDetails.property_type, benchmark_operating_expenses_per_unit: propertyBenchmark.operating_expenses, actual_operating_expenses_per_unit: annualExpensePerUnit, variance_from_benchmark: { absolute: annualExpensePerUnit - propertyBenchmark.operating_expenses, percentage: propertyBenchmark.operating_expenses > 0 ? ((annualExpensePerUnit - propertyBenchmark.operating_expenses) / propertyBenchmark.operating_expenses) * 100 : 0 }, performance_rating: this.calculatePerformanceRating(annualExpensePerUnit, propertyBenchmark.operating_expenses), benchmark_comparison: { operating_expenses: this.compareToBenchmark(expenseAnalysis.operating_expenses * 12 / propertyDetails.total_units, propertyBenchmark.operating_expenses), maintenance_capex: this.compareToBenchmark(expenseAnalysis.capital_expenses * 12 / propertyDetails.total_units, propertyBenchmark.operating_expenses * propertyBenchmark.capex_percentage / 100) } }; } calculatePerformanceRating(actual, benchmark) { const variance = ((actual - benchmark) / benchmark) * 100; if (variance <= -20) return 'Excellent'; if (variance <= -10) return 'Very Good'; if (variance <= 0) return 'Good'; if (variance <= 10) return 'Fair'; if (variance <= 25) return 'Poor'; return 'Very Poor'; } compareToBenchmark(actual, benchmark) { return { actual, benchmark, variance: actual - benchmark, variance_percentage: benchmark > 0 ? ((actual - benchmark) / benchmark) * 100 : 0, status: actual <= benchmark ? 'Below Benchmark' : 'Above Benchmark' }; } generateTrendAnalysis(expenseAnalysis, trackingPeriod) { // This would require historical data in a real implementation return { note: 'Trend analysis requires historical expense data across multiple time periods', current_period: trackingPeriod, recommendations: [ 'Track expenses consistently over multiple periods for trend analysis', 'Monitor seasonal variations in expenses', 'Compare year-over-year changes in major expense categories' ] }; } analyzeBudgetVariance(expenseAnalysis, financialMetrics, budgetTargets) { const variances = {}; if (budgetTargets.target_operating_ratio) { variances.operating_ratio = { target: budgetTargets.target_operating_ratio, actual: financialMetrics.operating_expense_ratio, variance: financialMetrics.operating_expense_ratio - budgetTargets.target_operating_ratio, status: financialMetrics.operating_expense_ratio <= budgetTargets.target_operating_ratio ? 'On Target' : 'Over Budget' }; } if (budgetTargets.target_maintenance_percentage) { const actualMaintenancePercentage = financialMetrics.capex_percentage; variances.maintenance_percentage = { target: budgetTargets.target_maintenance_percentage, actual: actualMaintenancePercentage, variance: actualMaintenancePercentage - budgetTargets.target_maintenance_percentage, status: actualMaintenancePercentage <= budgetTargets.target_maintenance_percentage ? 'On Target' : 'Over Budget' }; } if (budgetTargets.target_capex_reserve) { variances.capex_reserve = { target: budgetTargets.target_capex_reserve, actual: expenseAnalysis.capital_expenses, variance: expenseAnalysis.capital_expenses - budgetTargets.target_capex_reserve, status: expenseAnalysis.capital_expenses <= budgetTargets.target_capex_reserve ? 'Within Budget' : 'Over Budget' }; } return { budget_variances: variances, overall_budget_status: this.calculateOverallBudgetStatus(variances) }; } calculateOverallBudgetStatus(variances) { let overBudgetCount = 0; let totalVariances = 0; for (const variance of Object.values(variances)) { totalVariances++; if (variance.status.includes('Over')) { overBudgetCount++; } } if (overBudgetCount === 0) return 'On Track'; if (overBudgetCount / totalVariances <= 0.3) return 'Mostly On Track'; if (overBudgetCount / totalVariances <= 0.6) return 'Some Concerns'; return 'Significant Budget Issues'; } analyzeTaxDeductions(expenseAnalysis, propertyDetails) { const deductibleExpenses = { current_year_deductions: { operating_expenses: expenseAnalysis.operating_expenses * 12, // Annualized fixed_expenses: expenseAnalysis.fixed_expenses * 12, professional_services: expenseAnalysis.professional_services * 12, marketing_leasing: expenseAnalysis.marketing_leasing * 12, financing_costs: expenseAnalysis.financing_costs * 12 }, capital_expenses: { immediately_deductible: Math.min(expenseAnalysis.capital_expenses, 2500), // Section 179 small improvements depreciable: Math.max(0, expenseAnalysis.capital_expenses - 2500) } }; const totalCurrentDeductions = Object.values(deductibleExpenses.current_year_deductions) .reduce((sum, value) => sum + value, 0) + deductibleExpenses.capital_expenses.immediately_deductible; const estimatedTaxSavings = this.calculateTaxSavings(totalCurrentDeductions); return { deductible_expenses: deductibleExpenses, total_current_year_deductions: totalCurrentDeductions, estimated_tax_savings: estimatedTaxSavings, tax_optimization_tips: [ 'Keep detailed records of all property-related expenses', 'Consider timing of capital improvements for tax optimization', 'Track vehicle mileage for property management activities', 'Separate personal and business use of home office if applicable', 'Consult with a tax professional for property-specific strategies' ] }; } calculateTaxSavings(deductions) { // Simplified tax calculation - assumes combined federal and state rates const taxBrackets = [ { min: 0, max: 50000, rate: 0.22 }, { min: 50000, max: 100000, rate: 0.28 }, { min: 100000, max: Infinity, rate: 0.32 } ]; let taxSavings = 0; let remainingDeductions = deductions; for (const bracket of taxBrackets) { if (remainingDeductions <= 0) break; const bracketWidth = bracket.max === Infinity ? remainingDeductions : Math.min(bracket.max - bracket.min, remainingDeductions); taxSavings += bracketWidth * bracket.rate; remainingDeductions -= bracketWidth; } return { federal_savings: taxSavings * 0.7, // Assume 70% federal state_savings: taxSavings * 0.3, // Assume 30% state total_savings: taxSavings, effective_tax_rate: deductions > 0 ? (taxSavings / deductions) * 100 : 0 }; } analyzeCashFlowImpact(expenseAnalysis, incomeAnalysis) { const operatingCashFlow = incomeAnalysis.total_income - expenseAnalysis.operating_expenses - expenseAnalysis.fixed_expenses; const totalCashFlow = operatingCashFlow - expenseAnalysis.financing_costs; const cashFlowMargin = incomeAnalysis.total_income > 0 ? (totalCashFlow / incomeAnalysis.total_income) * 100 : 0; return { operating_cash_flow: operatingCashFlow, total_cash_flow: totalCashFlow, cash_flow_margin: cashFlowMargin, cash_flow_status: this.determineCashFlowStatus(totalCashFlow, cashFlowMargin), expense_impact_analysis: { largest_expense_category: this.findLargestExpenseCategory(expenseAnalysis), expense_efficiency: this.calculateExpenseEfficiency(expenseAnalysis, incomeAnalysis), improvement_opportunities: this.identifyImprovementOpportunities(expenseAnalysis) } }; } determineCashFlowStatus(totalCashFlow, margin) { if (totalCashFlow < 0) return 'Negative Cash Flow'; if (margin < 5) return 'Minimal Cash Flow'; if (margin < 15) return 'Moderate Cash Flow'; if (margin < 25) return 'Good Cash Flow'; return 'Excellent Cash Flow'; } findLargestExpenseCategory(expenseAnalysis) { const categories = { 'Operating Expenses': expenseAnalysis.operating_expenses, 'Fixed Expenses': expenseAnalysis.fixed_expenses, 'Capital Expenses': expenseAnalysis.capital_expenses, 'Financing Costs': expenseAnalysis.financing_costs, 'Professional Services': expenseAnalysis.professional_services, 'Marketing & Leasing': expenseAnalysis.marketing_leasing }; const largest = Object.entries(categories).reduce((max, [category, amount]) => amount > max.amount ? { category, amount } : max, { category: '', amount: 0 } ); return { category: largest.category, amount: largest.amount, percentage: expenseAnalysis.total_expenses > 0 ? (largest.amount / expenseAnalysis.total_expenses) * 100 : 0 }; } calculateExpenseEfficiency(expenseAnalysis, incomeAnalysis) { return { expense_to_income_ratio: incomeAnalysis.total_income > 0 ? (expenseAnalysis.total_expenses / incomeAnalysis.total_income) * 100 : 0, operating_efficiency: incomeAnalysis.total_income > 0 ? ((expenseAnalysis.operating_expenses + expenseAnalysis.fixed_expenses) / incomeAnalysis.total_income) * 100 : 0, capital_intensity: incomeAnalysis.total_income > 0 ? (expenseAnalysis.capital_expenses / incomeAnalysis.total_income) * 100 : 0 }; } identifyImprovementOpportunities(expenseAnalysis) { const opportunities = []; if (expenseAnalysis.operating_expenses > expenseAnalysis.total_expenses * 0.4) { opportunities.push({ category: 'Operating Expenses', issue: 'High operating expense ratio', recommendation: 'Review maintenance contracts and vendor pricing' }); } if (expenseAnalysis.capital_expenses > expenseAnalysis.total_expenses * 0.3) { opportunities.push({ category: 'Capital Expenses', issue: 'High capital expenditure', recommendation: 'Consider preventive maintenance to reduce major repairs' }); } if (expenseAnalysis.professional_services > expenseAnalysis.total_expenses * 0.1) { opportunities.push({ category: 'Professional Services', issue: 'High professional service costs', recommendation: 'Evaluate necessity and pricing of professional services' }); } return opportunities; } forecastExpenses(expenseAnalysis, propertyDetails) { const annualizedExpenses = expenseAnalysis.total_expenses * 12; const inflationRate = 0.03; // 3% annual inflation const propertyAgeInflator = propertyDetails.property_age_years ? 1 + (propertyDetails.property_age_years * 0.001) : 1; const forecast = []; for (let year = 1; year <= 5; year++) { const baseGrowth = Math.pow(1 + inflationRate, year); const adjustedGrowth = baseGrowth * propertyAgeInflator; forecast.push({ year: year, projected_expenses: annualizedExpenses * adjustedGrowth, growth_rate: ((adjustedGrowth - 1) * 100).toFixed(1) + '%', expense_per_unit: (annualizedExpenses * adjustedGrowth) / propertyDetails.total_units }); } return { current_annual_expenses: annualizedExpenses, five_year_forecast: forecast, forecast_assumptions: { inflation_rate: `${(inflationRate * 100).toFixed(1)}%`, property_age_factor: propertyAgeInflator.toFixed(3), notes: 'Forecast includes inflation and property age adjustments' } }; } generateRecommendations(expenseAnalysis, financialMetrics, benchmarkComparison, propertyDetails) { const recommendations = []; // High-level financial recommendations if (financialMetrics.operating_expense_ratio > 60) { recommendations.push({ category: 'Cost Control', priority: 'High', recommendation: 'Reduce operating expense ratio', description: 'Operating expenses exceed 60% of income - review all operating costs', potential_savings: financialMetrics.operating_expense_ratio * 100 }); } // Benchmark-based recommendations if (benchmarkComparison && benchmarkComparison.variance_from_benchmark.percentage > 20) { recommendations.push({ category: 'Benchmarking', priority: 'Medium', recommendation: 'Expenses significantly above market average', description: `Expenses are ${benchmarkComparison.variance_from_benchmark.percentage.toFixed(1)}% above benchmark`, potential_savings: benchmarkComparison.variance_from_benchmark.absolute }); } // Capital expense recommendations if (financialMetrics.capex_percentage > 15) { recommendations.push({ category: 'Capital Planning', priority: 'Medium', recommendation: 'High capital expenditure rate', description: 'Consider preventive maintenance program to reduce major repairs', potential_savings: expenseAnalysis.capital_expenses * 0.2 }); } // Property-specific recommendations if (propertyDetails.property_type === 'single_family' && expenseAnalysis.professional_services > 500) { recommendations.push({ category: 'Self-Management', priority: 'Low', recommendation: 'Consider self-management', description: 'Single family properties often benefit from owner management', potential_savings: expenseAnalysis.professional_services * 0.7 }); } // General improvement recommendations recommendations.push({ category: 'Process Improvement', priority: 'Low', recommendation: 'Implement expense tracking system', description: 'Regular expense tracking helps identify trends and optimize costs', potential_savings: expenseAnalysis.total_expenses * 0.05 }); return { recommendations, total_potential_savings: recommendations.reduce((sum, rec) => sum + (rec.potential_savings || 0), 0), implementation_priority: recommendations.filter(r => r.priority === 'High').length > 0 ? 'High' : recommendations.filter(r => r.priority === 'Medium').length > 0 ? 'Medium' : 'Low' }; } }