Investment Property
A quick look at a rental: monthly cash flow, cap rate, cash-on-cash return and where it goes over 5 and 10 years.
Open the Investment Property calculatorStep by step
- 1
Enter the deal
Set the purchase price, down payment, rate, term and closing costs as a percent.
- 2
Enter income
Type the monthly rent and the vacancy percent.
- 3
Enter expenses
Type taxes and insurance per year, HOA per month, and maintenance and management as a percent of rent.
- 4
Set growth
Under More details, set appreciation, rent growth and expense growth per year.
- 5
Download the PDF
If you like, pick a client and property in the Client & property menu above the button so the PDF says who it's for. It doesn't change your numbers. Download the Investment Property Quick Look PDF with your name, photo and phone on it; it saves to the Results tab.
- 6
Send it to clients
The Share tab has your branded link for this calculator, with buttons to copy, text or email it. Clients can run it there on their own.
Reading the results
The top number is monthly cash flow after the mortgage, with cap rate, cash-on-cash and net operating income.
Quick checks show debt service coverage, gross rent multiplier, the 1% rule and the break-even rent. Where it goes shows equity, total cash flow and total return in years 5 and 10.
Estimates to check
Figures are before income taxes and depreciation. Verify rents with active comps and expenses with actual bills. Growth rates are assumptions.
What the PDF has
The deal, yearly income and expenses, the return measures, the 5 and 10 year view and a year-by-year table for 10 years.
On your branded page
Clients can run this calculator on your branded page, techybroker.com/b/{handle}, under Investing. To download the PDF they give a name and an email or phone. That adds them to your clients, and their runs and downloads show in Activity.
Questions
What's a good cap rate?
It depends on the market and the risk. Compare it to what similar properties nearby trade at.
What does debt service coverage mean?
Net operating income divided by the mortgage payments. Lenders like 1.25 or higher.
Related
For an owner deciding whether to sell a rental now or keep it. Compares the cash from selling today, invested, with keeping it and selling later.
Runs a flip from purchase to resale: total cost, profit, return on cash and the most you can offer.
Shows what a replacement property has to be to defer all the gain, any boot, and a rough tax on the boot.