Property Details
1% Rule: Rent should be ≥ $3,000/month (✗ Below rule)
Financing
Loan Amount
$225,000
Monthly Mortgage (P&I)
$1,497
Operating Expenses
Cash Flow Analysis
Key Investment Metrics
5.90%
Cap Rate
-0.31%
Cash-on-Cash
10.0
GRM
0.99
DSCR
Break-Even Occupancy
95.9%
Total Cash Investment
$84,000
5-Year Projection
5-Year Appreciation
$47,782
5-Year Equity
$135,986
5-Year Total Return
$50,617
5-Year ROI
60.3%
Investment Summary
Monthly Cash Flow
-$22
Negative cash flow
Cash-on-Cash Return
-0.31%
Annual return on investment
What if rental income was higher?
See how different rent amounts affect your investment returns
Personalized Insights
4 insights based on your inputs
Negative Cash Flow Warning
This property loses $22/month. Consider negotiating a lower price or increasing rent.
Below the 1% Rule
Rent should be $3,000/month to meet the 1% rule. This property may struggle to cash flow.
DSCR Below 1.0
Income doesn't cover mortgage payments. This deal needs more down payment or higher rent.
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Frequently Asked Questions
What is cap rate?
Cap rate (capitalization rate) measures a property's potential return based on NOI (Net Operating Income) divided by purchase price. A 6% cap rate means the property generates 6% of its value annually before mortgage. Higher cap rates indicate higher potential returns but often higher risk.
What is cash-on-cash return?
Cash-on-cash return measures annual cash flow divided by total cash invested (down payment + closing costs). It shows the actual return on your invested capital. A 10% cash-on-cash return means you earn $10,000 annually on a $100,000 investment.
What is the 1% rule in real estate?
The 1% rule is a quick screening tool: monthly rent should be at least 1% of purchase price. A $200,000 property should rent for $2,000+/month. Properties meeting this rule often cash flow well, but it's just a starting point for analysis.
What is DSCR (Debt Service Coverage Ratio)?
DSCR measures ability to cover mortgage payments with NOI. DSCR = NOI ÷ Annual Mortgage Payment. Lenders typically require 1.2-1.25 minimum. A 1.25 DSCR means NOI is 25% higher than mortgage payments, providing a safety cushion.
What expenses should I budget for rental property?
Key expenses: Property taxes (varies by location), insurance (0.5-1% of value), maintenance/repairs (1-2% of value for reserves), property management (8-10% of rent if hired), vacancy (5-10% of rent), utilities (if included), and HOA fees if applicable.
How this works
Calculations are run entirely in your browser. No inputs are sent to our servers and no account is required. Formulas follow standard US definitions from the IRS and the CFPB where applicable; international users should confirm local tax and regulatory rules apply.
What this tool can’t do
When to consult a professional
This is a software engineering tool, not financial advice. Run the math here, then take the result to a certified financial planner, CPA, or your bank before making a decision that materially affects your money.
Sources
- [1]Consumer Financial Protection Bureau (CFPB)Official sourceconsumerfinance.govAccessed Apr 21, 2026
US consumer finance regulator; authoritative on mortgage disclosures, APR rules, credit cards.
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).