🏢 Real Estate Investment Calculator
Analyze rental property investments with precision. Calculate cash flow, ROI, cap rates, and make informed real estate decisions.
Real Estate Investment Fundamentals
Key Investment Metrics
Cash Flow
Monthly rental income minus all expenses. Positive cash flow means the property pays for itself.
Cap Rate
Annual net income ÷ property value. Measures property’s potential return independent of financing.
Cash-on-Cash Return
Annual cash flow ÷ total cash invested. Your actual return on the money you put in.
Investment Benefits
- ✓Monthly passive income stream
- ✓Property appreciation over time
- ✓Tax deductions and depreciation
- ✓Hedge against inflation
- ✓Leverage amplifies returns
Investment Analysis Framework
Research
Study local market trends, rental rates, and neighborhood growth potential.
Calculate
Run the numbers on cash flow, returns, and break-even scenarios.
Inspect
Thoroughly inspect the property for needed repairs and maintenance costs.
Negotiate
Use your analysis to negotiate the best purchase price and terms.
Common Rental Property Expenses
🏠 Property Costs
- • Property taxes
- • Property insurance
- • HOA fees
- • Utilities (if paid by owner)
- • Landscaping/snow removal
🔧 Maintenance
- • Routine maintenance
- • Repairs between tenants
- • Capital improvements
- • Emergency repairs
- • Property management
💼 Business Costs
- • Vacancy allowance
- • Marketing/advertising
- • Legal fees
- • Accounting/bookkeeping
- • Mortgage interest
Real Estate Investment Rules
The 1% Rule
Monthly rent should equal at least 1% of the purchase price. A $200,000 property should rent for $2,000/month.
The 50% Rule
Expect expenses to consume roughly 50% of rental income (excluding mortgage payments).
The 2% Rule
For excellent cash flow, target monthly rent at 2% of purchase price. Harder to find but very profitable.
Location First
Great locations with good schools, low crime, and job growth will always outperform.