Analyze rental property economics before purchase or refinancing decisions.
Overview
Rental property success depends on net cash flow, not gross rent alone.
This calculator includes vacancy, operating expenses, and debt service effects.
It helps screen deals and avoid over-optimistic assumptions.
Run downside scenarios to protect against underperformance.
Steps
Input gross rent and vacancy rate.
Include taxes, insurance, repairs, and management.
Add mortgage payment or loan assumptions.
Review monthly and annual cash flow after costs.
Compare cash-on-cash and ROI outcomes.
Math
Cash Flow = Effective Rent - Operating Expenses - Debt Service
Net cash flow is rental income after vacancy minus ownership and financing costs.
Worked cases
Compute effective rent and subtract costs.
Monthly cash flow indicates operating viability.
Recompute net cash flow with higher costs.
Thin-margin properties can quickly turn cash-flow negative.
Update debt service and rerun metrics.
Improved debt terms can materially strengthen annual returns.
Why use this
Questions