Analyze any investment property. Get cash flow, cap rate, cash-on-cash return, and a clear verdict on whether the deal works.
Analyzing a rental property deal requires looking at more than just monthly rent minus mortgage. This detailed analyzer compares long-term rental versus Airbnb returns, factors in vacancy rates and maintenance, and shows your true return on investment over time.
Cap Rate (Capitalization Rate) = Net Operating Income ÷ Purchase Price. Tells you the return as if you paid all cash. 5-10% is typical; higher = better return but often more risk.
Cash-on-Cash Return = Annual Cash Flow ÷ Total Cash Invested. This is your actual return on the money you put in. Includes leverage. 8-12% is a solid target.
The 1% Rule: Monthly rent should be at least 1% of purchase price. A $250K property should rent for $2,500+/month. It's a quick screening tool, not a final analysis.