Rental Property Deal Analyzer
Run a complete investment analysis with cash flow, cap rate, DSCR, equity buildup, and more.
Purchase & Financing
Income
Expenses
Monthly Cash Flow
-$493
Negative cash flow — proceed with caution
Cap Rate
4.70%
Cash-on-Cash
-8.5%
NOI (Annual)
$16,435
DSCR
0.74x
GRM
12.2x
Break-even Occ.
116%
Income & Expense Breakdown
Gross Annual Rent$28,800
Less: Vacancy (5%)-$1,440
Effective Gross Income$27,360
Property Tax-$4,200
Insurance-$1,800
Maintenance (10%)-$2,736
Management (8%)-$2,189
Net Operating Income$16,435
Debt Service (P&I)-$22,354
Annual Cash Flow -$5,919
5-Year Equity Buildup (3% appreciation)
| Year | Principal Paid | Appreciation | Total Equity |
|---|---|---|---|
| 1 | $2,844 | $10,500 | $83,344 |
| 2 | $5,894 | $21,315 | $97,209 |
| 3 | $9,165 | $32,454 | $111,619 |
| 4 | $12,671 | $43,928 | $126,599 |
| 5 | $16,432 | $55,746 | $142,177 |
Ready to track your real properties?
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Frequently asked questions
What is the difference between cap rate and cash-on-cash return?
Cap rate measures the property itself — annual net operating income (NOI) divided by purchase price — and ignores how you finance it. Cash-on-cash return divides your annual pre-tax cash flow (after the mortgage) by the actual cash you put in (down payment plus closing costs), so it reflects your leveraged return. A property can have a modest cap rate but a strong cash-on-cash return once financing is layered in. Treat both as a screening estimate, not investment or tax advice.
What DSCR do lenders look for?
DSCR (debt service coverage ratio) is NOI divided by annual debt service — it shows whether the property’s income covers its loan payments. Many investment-property lenders look for a DSCR around 1.20 to 1.25 as a typical comfort zone, meaning income exceeds the payment by 20–25%, but the exact threshold is lender- and program-dependent rather than a fixed rule. A DSCR below 1.0 means the property does not cover its own debt from operations.
What is the 1% rule and is it reliable?
The 1% rule is a quick screen: monthly rent should be at least 1% of the purchase price (e.g. $2,000/month on a $200,000 home). It is a rough first-pass filter, not a verdict — it ignores taxes, insurance, financing, and local expense levels, so a deal that passes can still be a poor cash-flow play and one that fails can still work. Use it to triage which deals are worth a full analysis like this one.
How does equity buildup work in this analysis?
Equity grows two ways here: the principal you pay down each month as you amortize the loan, plus appreciation (this tool assumes a flat 3% per year for illustration). The 5-year table compounds both on top of your original down payment. Appreciation is an assumption, not a forecast — markets vary widely — so treat the projected equity as a what-if scenario, not a promise.