Evaluate property investment economics with a blended cash-flow and return perspective.
Overview
Real estate returns come from both operating cash flow and long-term value changes.
This calculator combines rent, expenses, financing, and appreciation assumptions.
It helps screen properties before deeper due diligence.
Run conservative vacancy and maintenance scenarios to avoid optimistic underwriting.
Steps
Input price, down payment, and loan assumptions.
Use realistic annual gross rent estimate.
Include taxes, insurance, maintenance, and vacancy reserve.
Review NOI, debt service, and return metrics.
Run lower rent and higher expense scenarios.
Math
ROI = (Net Annual Profit + Appreciation - Costs) / Invested Equity
Property ROI compares net annual economic gain against actual equity invested.
Worked cases
ROI = net gain / equity invested.
Baseline return estimate guides screening decision.
Lower effective rent and recalculate returns.
Return can compress significantly with sustained vacancy.
Recompute ROI including added equity and income.
Value-add viability depends on net return uplift.
Why use this
Questions