Rental property analyzer
Will this place pay its own way?
Enter the listing’s numbers. You get the monthly reality, the investor ratios and a clear verdict, with every assumption in view.
The numbers
How this verdict is reached
Monthly cash flow is rent minus the mortgage, taxes, insurance, HOA, and the vacancy, maintenance and management percentages. Cap rate is annual net operating income (which leaves out the mortgage) divided by price. Cash-on-cash is annual cash flow divided by cash invested: your down payment plus 3% closing costs.
Strong deal: more than $200 a month and a cash-on-cash return above 8%. Worth a look: positive cash flow. Walk away: negative cash flow. This is a screen, not a promise. Repairs, utilities, income tax and appreciation are not included.
First-pass verdict
Worth a look
Cash flow is healthy at $321 a month, but the 5.0% cash-on-cash return is under the 8% mark. See if the price or terms can improve.
Monthly reality
- Scheduled rent
- $2,500
- Vacancy reserve
- −$125
- Taxes, insurance & HOA
- −$425
- Maintenance & management
- −$325
- Mortgage payment
- −$1,304
- Left each month
- $321
Quick checks
- 1% rule
- Fail (0.91%)
- Annual net operating income
- $19,500
- Cash invested (down + 3% closing)
- $77,000
Your next step
Shown only when the numbers hold up.
How to read your results
Monthly cash flow is what is left after the mortgage and every operating cost. It is the number that decides whether the property supports itself or you do.
Cap rate divides the property’s annual net operating income by its price, ignoring the loan. Use it to compare properties. Cash-on-cash return divides your annual cash flow by the cash you actually put in, so it reflects your financing. Together they answer two different questions: is this a good property, and is this a good deal for me.
The verdict is a first screen. A strong deal needs more than $200 a month of cash flow and a return above 8%. A worth a look property cash flows but falls short of that. A walk away loses money every month. Read the full analysis guide before you make an offer, and stress-test the rent, vacancy and repair assumptions.