How to use this calculator
Rental properties are evaluated with multiple metrics because each answers a different question. Cap rate compares net operating income with purchase price before financing. Cash-on-cash return compares annual cash flow with cash invested. Monthly cash flow shows whether the property is positive after debt service and operating assumptions. DSCR shows how lenders may evaluate rent versus PITIA.
Rules of thumb vary by market. A 5% cap rate may be healthy in some areas and weak in others. Cash-on-cash near 8% can be attractive, but appreciation, repairs, vacancy, and financing terms matter. Positive cash flow is a useful baseline, but it is not the only measure of return.
This dashboard combines purchase price, rent, vacancy, taxes, insurance, HOA, maintenance, management, and debt service. Actual performance can vary, so stress-test vacancy, repairs, rent changes, and exit assumptions before buying.
For illustration purposes only. Not a rate quote, loan offer, or commitment to lend. Contact us for a personalized quote.