Rental Property Calculator
Analyze any rental property investment in minutes. Calculate cash flow, ROI, cap rate, and see 5-year wealth building projections.
Purchase Details
Loan Details
Rental Income
Annual Expenses
Growth Assumptions
Investment Analysis
Cash flow is marginal. May be better as an appreciation play.
Investment Summary
Monthly Cash Flow
5-Year Wealth Building Projection
Key Investment Ratios
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Get pre-approved for fix & flip or rental financing in 24 hours. Close in as little as 10 days.
- Pre-approval in 24 hours
- Close in 10-14 days
- Get $350 cash at closing
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How to Analyze a Rental Property
Successful rental property investing requires thorough analysis before purchasing. This calculator helps you evaluate the four key wealth-building components of rental properties:
The 4 Ways Rentals Build Wealth
- Cash Flow: Monthly income after all expenses and mortgage
- Appreciation: Property value increase over time
- Equity Paydown: Tenants pay down your mortgage principal
- Tax Benefits: Depreciation, deductions, and 1031 exchanges
Key Metrics to Evaluate
- Cash-on-Cash Return: Annual cash flow ÷ cash invested
- Cap Rate: NOI ÷ property value
- DSCR: NOI ÷ debt service (for loan qualification)
- 1% Rule: Monthly rent ÷ purchase price
Frequently Asked Questions
How do I know if a rental property is a good investment?▼
Look for positive monthly cash flow, cash-on-cash return of 8%+, cap rate appropriate for your market, and DSCR above 1.2. Also consider appreciation potential, tenant demand, and your exit strategy.
What is the 1% rule in rental property?▼
The 1% rule states that monthly rent should be at least 1% of the purchase price. For example, a $300,000 property should rent for at least $3,000/month. This is a quick screening tool, not a definitive analysis.
How much should I put down on an investment property?▼
Most lenders require 20-25% down for investment properties. Higher down payments (25-30%) often get better rates. For DSCR loans, 20-25% is typical. FHA/VA loans don't apply to non-owner-occupied properties.
What expenses should I include in my rental analysis?▼
Include property taxes, insurance, property management (8-10%), maintenance (5-10% of rent), vacancy (5-8%), HOA if applicable, utilities if owner-paid, and any other recurring costs.
What is a good cash-on-cash return for rental property?▼
Most investors target 8-12% cash-on-cash return, though this varies by market. In expensive markets, 5-7% may be acceptable with strong appreciation. In cash flow markets, 10-15%+ is achievable.