Most feasibility reviews for small residential projects focus on two numbers: expected sale or rental price, and construction cost. Both matter. But the projects we have seen struggle were rarely undone by those alone.
Here are five variables that deserve a line in every model.
1. Time
Permits, design changes and contractor schedules slip. Every extra month carries interest, insurance and opportunity cost. Model at least one scenario where the project takes six months longer than planned.
2. Financing terms, not just rates
The interest rate is visible. Covenants, refinancing conditions and lender requirements at renewal are less so, and they can force decisions at the worst moment.
3. Use and zoning risk
How a space is registered and how it is actually used are not always the same. A gap there can limit financing, sale options or insurance later.
4. Exit liquidity
A good asset in a thin market can still be hard to sell quickly. Ask who the likely buyer is, and how many of them exist in a weak year.
5. Your own attention
Small projects consume the owner's time far beyond the budgeted hours. Tenant issues, disputes and paperwork are real costs, even if they never appear in the spreadsheet.
The goal
Stress-testing is not about predicting the future. It is about finding a structure that survives several futures. If a project only works in the hopeful scenario, it is not yet ready.