Rental Property Calculator
Analyze rental property investment returns and cash flow
Our rental property calculator helps real estate investors analyze potential rental properties by calculating cash flow, cap rate, cash-on-cash return, and other key metrics. Make informed investment decisions with comprehensive financial analysis including the 1% rule and 50% rule evaluations.
Property Analysis
Property Information
Financing
Monthly Income
Monthly Expenses
Investment Analysis
Investment Rules Analysis
Financial Breakdown
| Item | Monthly | Annual |
|---|---|---|
| Gross Rental Income | $2,600 | $31,200 |
| Vacancy Loss | -$130 | -$1,560 |
| Net Rental Income | $2,470 | $29,640 |
| Mortgage Payment | -$1,517 | -$18,204 |
| Property Tax | -$400 | -$4,800 |
| Insurance | -$150 | -$1,800 |
| Maintenance | -$200 | -$2,400 |
| Property Management | -$250 | -$3,000 |
| Other Expenses | -$100 | -$1,200 |
| Net Cash Flow | $-147 | $-1,764 |
Investment Summary
Investment Analysis
This property shows negative cash flow or poor returns. Consider negotiating a lower price, increasing rents, or looking for better opportunities.
How to Use
1. Enter the property purchase price and down payment percentage
2. Add closing costs and any repair/renovation expenses
3. Input financing details (interest rate and loan term)
4. Enter expected monthly rental income
5. Add all monthly expenses (taxes, insurance, maintenance, etc.)
6. Review the analysis and key investment metrics
Key Metrics Explained
Cash Flow
Monthly income minus all expenses. Positive cash flow means the property generates profit.
Cap Rate
Annual net operating income divided by property value. Higher cap rates indicate better returns.
Cash-on-Cash Return
Annual cash flow divided by total cash invested. Measures return on your actual investment.
1% Rule
Monthly rent should be at least 1% of purchase price. A quick screening tool for cash flow potential.
50% Rule
Operating expenses typically consume about 50% of rental income. Useful for quick estimates.
Investment Strategies
Cash Flow Investing
Focus on properties that generate positive monthly cash flow from day one.
Appreciation Investing
Buy in areas with strong growth potential, accepting lower initial cash flow for future gains.
BRRRR Strategy
Buy, Rehab, Rent, Refinance, Repeat. Use refinancing to pull out capital for the next investment.
House Hacking
Live in one unit of a multi-family property while renting out the others to cover expenses.
Example Calculation
Property: $300,000 single-family home
• Purchase Price: $300,000
• Down Payment (20%): $60,000
• Monthly Rent: $2,500
• Monthly Expenses: $1,200
• Monthly Mortgage: $1,580
• Monthly Cash Flow: -$280
• Cap Rate: 5.2%
• Cash-on-Cash Return: -5.0%
This property would have negative cash flow but might work in an appreciating market.
Frequently Asked Questions
What's a good cap rate for rental properties?
Generally 4-10% depending on location and property type. Higher cap rates often mean higher risk areas.
Should I buy a property with negative cash flow?
Only if you expect significant appreciation and can afford the monthly shortfall. Cash flow properties are generally safer.
How much should I budget for maintenance?
Typically 5-10% of rental income, or $1-2 per square foot annually. Older properties require more maintenance.