Rental Property

Rental Property Calculator Estimate cash flow, ROI, and risk for residential and multifamily rentals — with realistic exp...

Rental Property Calculator

Estimate cash flow, ROI, and risk for residential and multifamily rentals — with realistic expenses and tax insights.

Standard

House Hack

BRRRR Prep

1% Rule

Purchase Price ($)

Down Payment (%)

Interest Rate (%)

Monthly Rent ($)

Annual Property Tax ($)

Annual Insurance ($)

Operating Expenses (Estimates)

Vacancy (%)

Repairs (%)

CapEx (%)

Property Mgmt (%)

Property Price ($)

Units 2-unit 3-unit 4-unit

Total Monthly Rent ($)

Purchase Price ($)

Rehab Cost ($)

After Repair Value ($)

Property Price ($)

Monthly Rent ($)

$0

Monthly Cash Flow

0.00%

Cap Rate

0.00%

Cash-on-Cash ROI

0.00%

Total Return (5-Yr)

Annual Cash Flow Breakdown

Key Metrics Explained

Cap Rate** = (NOI / Property Value) × 100% → Measures unleveraged return; ideal for comparing deals.

Cash-on-Cash (CoC)** = (Annual Cash Flow / Total Cash Invested) × 100% → Your actual return on *cash used* (down payment + closing + rehab).

Total Return** = (Cash Flow + Appreciation + Principal Paydown) / Equity → True long-term wealth builder.

2025 Benchmarks: • Cap Rate: 4.5–6.5% (SFH), 5.5–7.5% (MFH) • CoC: 5–10% for solid deals • < 4% Cap = likely overpriced in most markets

Financing & Risk Factors

⚠️ Critical considerations:

• Down Payment: 15%+ for 1–4 units (Fannie/Freddie); 20–25% for 5+ (DSCR loans).
• DSCR Loans: For 5+ units, lenders require Debt Service Coverage Ratio ≥ 1.25× (e.g., $1,250 NOI for $1,000 mortgage).
• Vacancy & Repairs: Underestimating by 2% = $600/mo loss on $2,500 rent.
• Rent Control: In CA/NY, limits appreciation + cash flow upside.
• Leverage Risk: >75% LTV = higher rates, stricter underwriting.

✅ Pro Tip: Run worst-case scenarios: 10% vacancy, 5% repairs, 20% rent drop.

Tax & Wealth Strategies

Depreciation: $300K property → $10,909/yr deduction (27.5-yr straight-line) → saves $3,000+ in taxes (28% bracket).

Cost Segregation: Accelerate depreciation — write off 20–30% of purchase price in Year 1.

1031 Exchange: Defer capital gains by rolling sale proceeds into a like-kind property.

House Hack Example: • $400K 4-plex, $80K down • $2,800 rent, $800 owner cost → **$2,000/mo free housing + $9,600/yr cash flow**

How to Use This Calculator

➡️ Standard Rental

Enter purchase price, rent, and operating expenses to get cash flow, cap rate, and CoC.

➡️ House Hack

Model live-in + rent units — see net housing cost and cash flow.

➡️ BRRRR Prep

Estimate rehab budget, ARV, and equity build-up for refinance.

➡️ 1% Rule

Quick screening: Rent ≥ 1% of purchase price (e.g., $200K → $2,000/mo rent).

Note: Assumes 30-yr amortization, no rent growth, 3% annual appreciation. Adjust for your market.