Rental Analyzer
Evaluate rental property cash flow, cap rate, and ROI before you buy.
Need a walkthrough? Read the Rental Analyzer Guide.
Rental Property Analyzer
How Rental Property Analysis Works
The Rental Analyzer evaluates rental property investments by computing key metrics like monthly cash flow, cap rate, and cash-on-cash return. Enter property details, purchase terms, and expected rental income to determine if an investment property meets your financial goals.
Formula
Cash-on-Cash Return = Annual Cash Flow / Total Cash Invested x 100
Key Features
- ✓Monthly cash flow and annual return projections
- ✓Cap rate and cash-on-cash return calculations
- ✓Expense breakdown including management and maintenance
- ✓Scenario analysis with different vacancy rates
Pro Tip
Always budget for a 5-10% vacancy rate and set aside 10-15% of rental income for maintenance and repairs. These hidden costs are the top reason new landlords underestimate expenses and overestimate returns.
When to use this tool
- Before making an offer on an investment property.
- When comparing cash-flow potential across listings.
- While stress-testing vacancy and expense assumptions.
Worked example
Monthly rent of $2,200 with $700 in expenses and a $1,100 mortgage leaves about $400 in cash flow. Annual NOI of $18,000 on a $300,000 purchase implies a 6% cap rate.
How to interpret your results
Focus on consistent positive cash flow and a cap rate that meets your target. If results are thin, adjust rent, expenses, or purchase price before proceeding.
What to do next
Project long-term performance and compare deals side by side before you decide.
Guides: Rental Analyzer Guide, Rental Yield Basics.
Related tools: Rental Income Projector and Property Comparator.
Compare outcomes: Renting vs Buying Home.
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Report an issue
Found a wrong result, missing option, or confusing explanation? Send it through and we will review the tool.
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