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Real estate & rental

Real Estate Rental Property Calculator

Full analysis of a rental purchase: income, expenses, financing and what is left each month.

Your numbers

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Result

Monthly cash flow -$182.39
Net operating income $20,864
Monthly mortgage $1,921.06
Cap rate 5.42%
Cash on cash return -2.27%
Rent as a share of price 0.83%
The property runs at -$182.39 a month. The cap rate of 5.42% is below the mortgage rate, which is why leverage is working against it here.

Maintenance, capital reserves and management are included as percentages of rent because leaving them out is the most common error in rental analysis. A property that only cash flows when those are set to zero does not cash flow. Not investment advice.

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Questions

About this calculator

What is the 1% rule?

Monthly rent of at least 1% of purchase price. It is a screening filter that has become very hard to meet in most markets, and failing it does not automatically make a deal bad.

Why include management if I self-manage?

Because your time has value and because you may not always want to do it. A property that only works when you work for free is a job, not an investment.

The formula

cash flow = NOI - annual debt service, where NOI is effective rent less all operating expenses

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Estimating is the easy part

The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.