Real Estate Calculator

Real Estate Calculator Investment Affordability Rent vs. Buy BRRRR ...

Real Estate Calculator

Investment Property

Property Price ($)

Down Payment (%)

Interest Rate (%)

Loan Term (Years)

Monthly Rent ($)

Annual Expenses ($)

Home Affordability

Annual Income ($)

Monthly Debts ($)

Down Payment (%)

Interest Rate (%)

Loan Term (Years)

Property Tax Rate (%)

Rent vs. Buy

Home Price ($)

Down Payment (%)

Mortgage Rate (%)

Monthly Rent ($)

Rent Increase Rate (%)

Investment Return (%)

BRRRR Method

Purchase Price ($)

Repair Costs ($)

After Repair Value ($)

Rent After Repair ($)

Refinance LTV (%)

Interest Rate (%)

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Results

Cash Flow (Monthly): $420.50

Cash-on-Cash Return: 8.41%

Monthly Mortgage: $1,896.20

Down Payment Amount: $75,000

Income vs Expenses

Rent

Expenses

Maximum Home Price: $320,000

Monthly Payment: $1,920

Debt-to-Income Ratio: 28%

Down Payment Needed: $64,000

Buy: Total Cost (5 yrs): $115,200

Rent: Total Cost (5 yrs): $138,000

Equity Built (Buy): $42,000

Investment (Rent): $18,000

Recommendation: Buying is better

Total Investment: $230,000

Cash-Out Refinance: $225,000

Net Cash Invested: $5,000

Monthly Cash Flow: $650

ROI on Cash: 156%

Real Estate Investment Strategies

Real estate offers multiple pathways to wealth creation, from traditional rental properties to innovative strategies like BRRRR (Buy, Rehab, Rent, Refinance, Repeat). Understanding which approach suits your financial situation and goals is crucial for success.

Investment analysis helps evaluate rental properties based on cash flow and return metrics. Home affordability determines how much house you can comfortably afford. Rent vs. Buy compares the long-term financial implications of renting versus homeownership. BRRRR method is a powerful strategy for building a real estate portfolio with minimal cash investment.

Use this comprehensive calculator to analyze different scenarios and make data-driven real estate decisions that align with your investment objectives.

Frequently Asked Questions

Q: What is a good cash-on-cash return for rental properties?
A: Generally, 6-10% is considered strong for residential rental properties. Returns above 10% are excellent but may carry higher risk. The ideal return depends on your market, property type, and risk tolerance.

Q: How much house can I afford based on my income?
A: A common rule is that your total housing payment (including mortgage, taxes, and insurance) should not exceed 28% of your gross monthly income. Additionally, your total debt-to-income ratio should be below 36-43%.

Q: Is it better to rent or buy a home?
A: It depends on your timeline, financial situation, and market conditions. Buying is typically better for long-term stays (5+ years), while renting offers flexibility and lower upfront costs for shorter periods.

Q: How does the BRRRR method work?
A: BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property, rehab it to increase value, rent it out, refinance to pull out most of your initial investment, then repeat the process with the returned capital.

Q: What expenses should I include in rental property calculations?
A: Include mortgage payment, property taxes, insurance, maintenance (1-3% of property value annually), property management (8-10% of rent), vacancy (5-10% of rent), and utilities if applicable.

Q: How much down payment do I need for an investment property?
A: Conventional lenders typically require 15-25% down payment for investment properties. FHA loans require 3.5% but are only for owner-occupied properties. Private lenders may have different requirements.

Q: What is a good debt-to-income ratio for mortgage approval?
A: Most lenders prefer a debt-to-income (DTI) ratio of 36% or lower. Some programs allow up to 43-50%, but lower DTI ratios result in better interest rates and loan terms.