Analyze an investment property before you fall in love with it.
Turn price, rent, vacancy, expenses, financing and market assumptions into a model of NOI, cash flow, cap rate, cash-on-cash, DSCR, equity and projected sale outcomes.
The calculator opens with sample numbers from the supplied investment workbook. Replace them with the property, financing and market assumptions you want to analyze.
Property & acquisition
Financing assumptions
Rental income
Year 1 uses its own vacancy assumption. Beginning in year 2, rent grows annually by the rent-growth assumption below.
Operating expenses
Management and maintenance are modeled as a percentage of effective rental income after vacancy. Fixed expenses grow with inflation in the projection.
Growth, tax & sale assumptions
Tax and sale outputs are simplified planning estimates. Actual basis, depreciation, passive-activity treatment and taxable gain depend on your facts and tax rules.
Year 1 operating view
- Scheduled gross income
- $52,800
- Modeled vacancy loss
- -$2,640
- Effective gross income
- $50,160
- Operating expenses
- -$10,300
- NOI
- $39,860
- Annual debt service
- -$20,438
- Principal reduction
- $3,953
- Annual cash flow
- $19,421
- Annual depreciation
- $12,727
Vacancy sensitivity
See how Year 1 changes when only the first-year vacancy assumption changes.
| First-year vacancy | NOI | Cash flow | DSCR |
|---|---|---|---|
| 0% | $42,262 | $1,819/mo | 2.07x |
| 5% | $39,860 | $1,618/mo | 1.95x |
| 10% | $37,457 | $1,418/mo | 1.83x |
| 15% | $35,055 | $1,218/mo | 1.72x |
| 20% | $32,652 | $1,018/mo | 1.60x |
10-year projection
The model carries rent growth, expense inflation, appreciation, amortization, depreciation and simplified sale taxes forward each year. Key decision years are highlighted below.
Swipe horizontally to view all metrics.
| Year | Value | NOI | Cash flow | Cash-on-cash return | Projected equity | Return / initial cash | Return on equity | Sale proceeds after tax |
|---|---|---|---|---|---|---|---|---|
| 1 | $665,600 | $39,860 | $19,421 | 15.5% | $372,053 | 268.0% | 90.5% | $315,523 |
| 3 | $719,913 | $45,830 | $25,392 | 20.2% | $434,962 | 42.8% | 12.4% | $362,537 |
| 5 | $778,658 | $49,697 | $29,259 | 23.3% | $503,316 | 47.3% | 11.8% | $414,217 |
| 10 | $947,356 | $60,838 | $40,399 | 32.2% | $701,276 | 60.4% | 10.8% | $566,662 |
How the model works
- NOI = effective gross rental income minus property taxes, insurance, HOA, other operating expenses, maintenance and management. Financing, depreciation and one-time acquisition costs are excluded from NOI.
- Cash-on-cash = annual pre-tax cash flow after debt service divided by total initial cash, including down payment, purchase costs and initial repairs.
- Projected cap rate = that year's NOI divided by the projected year-end property value, following the supplied workbook methodology.
- Total annual return combines cash flow after estimated income-tax impact, mortgage principal reduction and annual value gain. In Year 1, value gain includes the difference between purchase price and projected market value.
- Estimated sale proceeds deduct modeled selling costs, remaining loan balance and simplified capital-gains/depreciation-recapture taxes.
Planning tool — not tax, lending or investment advice
This analyzer is educational and depends entirely on the assumptions you enter. It does not forecast rent, occupancy, appreciation, repairs, taxes, financing or investment performance. Depreciation and tax calculations are simplified and may not match your tax return. Confirm property-specific income, expenses, rental rules, insurance, financing and tax treatment with the appropriate professionals before investing.
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These estimates are a starting point. I can help connect the numbers to local properties, current market conditions and your real estate goals. A licensed mortgage professional should confirm actual financing eligibility and loan terms.