Real Estate Investment Calculator
Analyze rental property investments with cap rate, cash-on-cash return, and cash flow projections. Make informed real estate investment decisions.
Investment Summary
Monthly Cash Flow
-$22
Negative cash flow
Cash-on-Cash Return
-0.31%
Annual return on investment
Property Details
1% Rule: Rent should be ≥ $3,000/month (✗ Below rule)
Financing
Loan Amount
$225,000
Monthly Mortgage (P&I)
$1,497
Operating Expenses
Cash Flow Analysis
Key Investment Metrics
5.90%
Cap Rate
-0.31%
Cash-on-Cash
10.0
GRM
0.99
DSCR
Break-Even Occupancy
95.9%
Total Cash Investment
$84,000
5-Year Projection
5-Year Appreciation
$47,782
5-Year Equity
$135,986
5-Year Total Return
$50,617
5-Year ROI
60.3%
Investment Summary
Monthly Cash Flow
-$22
Negative cash flow
Cash-on-Cash Return
-0.31%
Annual return on investment
What if rental income was higher?
See how different rent amounts affect your investment returns
Personalized Insights
4 insights based on your inputs
Negative Cash Flow Warning
This property loses $22/month. Consider negotiating a lower price or increasing rent.
Below the 1% Rule
Rent should be $3,000/month to meet the 1% rule. This property may struggle to cash flow.
DSCR Below 1.0
Income doesn't cover mortgage payments. This deal needs more down payment or higher rent.
Related Calculators
Explore other tools that might help
Quick Answer
Real estate investment analysis includes: Cap Rate = NOI / Property Value, Cash-on-Cash = Annual Cash Flow / Cash Invested, ROI = Total Return / Total Investment. Our calculator provides comprehensive property analysis.
Key Facts
- Cap rate = Net Operating Income / Property Value
- Cash-on-cash return = Cash Flow / Cash Invested
- Good cap rate varies by market (4-10%)
- Include all expenses in NOI calculation
- Leverage amplifies returns and risks
- Consider appreciation and tax benefits
Frequently Asked Questions
Cap rate (capitalization rate) measures a property's potential return based on NOI (Net Operating Income) divided by purchase price. A 6% cap rate means the property generates 6% of its value annually before mortgage. Higher cap rates indicate higher potential returns but often higher risk.
Cash-on-cash return measures annual cash flow divided by total cash invested (down payment + closing costs). It shows the actual return on your invested capital. A 10% cash-on-cash return means you earn $10,000 annually on a $100,000 investment.
The 1% rule is a quick screening tool: monthly rent should be at least 1% of purchase price. A $200,000 property should rent for $2,000+/month. Properties meeting this rule often cash flow well, but it's just a starting point for analysis.
DSCR measures ability to cover mortgage payments with NOI. DSCR = NOI ÷ Annual Mortgage Payment. Lenders typically require 1.2-1.25 minimum. A 1.25 DSCR means NOI is 25% higher than mortgage payments, providing a safety cushion.
Key expenses: Property taxes (varies by location), insurance (0.5-1% of value), maintenance/repairs (1-2% of value for reserves), property management (8-10% of rent if hired), vacancy (5-10% of rent), utilities (if included), and HOA fees if applicable.
Investment Summary
Monthly Cash Flow
-$22
Negative cash flow
Cash-on-Cash Return
-0.31%
Annual return on investment