Rental Property Calculator
Analyze rental property investments with cash flow, ROI, and cap rate calculations
Investment Analysis
Purchase Information
Loan amount: $0
Rental Income
Monthly Expenses
Future Sale
Future value: $0
Investment Analysis Results
Monthly Cash Flow
Annual Summary
Investment Quality
Example Analysis
Sample Property
Purchase price: $200,000
Down payment: $40,000 (20%)
Monthly rent: $1,800
Monthly expenses: $500
Loan payment: $800
Results
Monthly cash flow: $500
Annual cash flow: $6,000
Cash-on-cash return: 15%
Cap rate: 7.8%
Key Metrics Explained
Cap Rate
NOI ÷ Purchase Price
6-8%+ is generally good
Cash-on-Cash
Annual Cash Flow ÷ Down Payment
8-12%+ is attractive
Cash Flow
Income - All Expenses
Positive is essential
Investment Guidelines
1% Rule: Monthly rent ≥ 1% of purchase price
50% Rule: Operating expenses ≈ 50% of rent
2% Rule: Monthly rent = 2% of price (rare but ideal)
BRRRR: Buy, Rehab, Rent, Refinance, Repeat
Understanding Rental Property Investment
What Makes a Good Investment?
A successful rental property investment generates positive cash flow while building long-term wealth through appreciation and principal paydown. The key is finding properties that produce sufficient income to cover all expenses and provide a reasonable return on your investment.
Key Success Factors
- •Location with strong rental demand
- •Property condition requiring minimal repairs
- •Market rent sufficient to cover expenses
- •Long-term appreciation potential
Financial Metrics Explained
Cap Rate
Measures the property's return independent of financing. Higher cap rates indicate better returns but may come with higher risk.
Cash-on-Cash Return
Shows actual return on your cash investment. Accounts for leverage and financing costs.
Net Operating Income (NOI)
Income after operating expenses but before mortgage payments. Used to calculate cap rate.
Remember: Factor in vacancy, maintenance, and management costs for realistic projections.