Tools

Rental Property Cash Flow

Will a rental pay for itself? Enter the rent and expenses to see the monthly cash flow, the investor ratios, and the rent you need to break even.

Monthly cash flow$0.00

Purchase and loan

Purchase price Down payment Interest rate Loan term Closing costs and repairs paid in cash

Investment loans usually need a larger down payment than a home you will live in, and carry a higher rate. Use your lender's quote.

Income

Monthly rent Other monthly income (parking, laundry, pets) Vacancy and unpaid rent Lowest rent you might get (optional) Highest rent you might get (optional)

Check rents against similar properties nearby, such as the lease comparables in a market analysis. The low and high rents show how far the cash flow moves.

Expenses you pay as the owner

Property tax, per year Insurance, per year HOA or condo dues, per month Property management, % of rent Maintenance and repairs, % of rent Capital reserve (roof, HVAC), % of rent Other monthly expenses (utilities, lawn, snow)

The percentages are placeholders to adjust, not norms: set management to what a manager would charge and the reserves to what the age and condition of the property call for. Virginia county and city tax rates are on the tax rates page.

Mortgage calculator for this loan Amortization schedule Loan comparison Virginia tax rates

How the numbers are built

Gross income is the rent plus any other income. Vacancy takes a share of it, leaving the income you collect. Property tax, insurance, dues and other expenses are monthly amounts; management, maintenance and the capital reserve are shares of the income you collect. Net operating income is collected income less those operating expenses, before the mortgage. Cash flow is net operating income less the loan payment.

The cap rate is a year of net operating income divided by the price. Cash-on-cash return is a year of cash flow divided by the cash you put in (the down payment plus closing costs and repairs). Debt service coverage is net operating income divided by the loan payment; lenders often look for a figure comfortably above 1. The break-even rent is the rent at which the cash flow is zero with your other inputs unchanged.