A walkthrough, end to end.
- 1
Enter purchase, rent, vacancy %, repair %, capex %, management %, HOA, taxes, insurance.
- 2
The calculator returns a fully-loaded monthly and annual cash flow plus year-1 cash-on-cash.
- 3
Adjust assumptions to stress-test deals — most failures come from optimistic vacancy and maintenance estimates.
Full pro-forma cash flow
Effective rent = Rent × (1 − vacancy%). Operating expenses = repairs + capex + management + HOA + taxes + insurance. Cash flow = effective rent − op expenses − mortgage P&I. Comprehensive cash-flow analysis is what separates real-estate operators from speculators.
What you can do with this.
Vacancy assumption realism
5% vacancy is a typical default in stable markets. High-turnover student rentals can see 15–20%. New investors routinely model 0% vacancy and overestimate returns by 5–10%.
Repair vs. capex split
Repairs (5–10% of rent) cover routine maintenance. Capex (10% of rent) covers big-ticket items (roof, HVAC, water heater) — averaged over their useful life. Both reserves are real expenses, not optional.
Property management cost
8–12% of monthly rent for full-service property management. Self-management saves the cost but consumes 4–8 hours/month per unit. Factor your time in even when you're managing yourself.
Single-family vs. multifamily math
Single-family: simpler management, slower appreciation. Multifamily: lower per-unit vacancy risk, better economies of scale, more complex. Run both scenarios in the calculator.
Out-of-state investing
Lower-cost markets (Memphis, Cleveland, Birmingham) often show stronger cap rates on paper. Add 1–2% to vacancy and management estimates for the friction of remote ownership.
Section 8 / housing voucher
Government-paid rent reduces vacancy risk dramatically. Counterweight: longer turnover times, more tenant friction, and inspection requirements. Net often comparable to market-rate.
Short-term vs. long-term rental
Short-term (Airbnb): higher gross rent, much higher OpEx (cleaning, supplies, vacancy 30–50%), regulation risk. Long-term: simpler. The calculator's defaults assume long-term.
Rental property 2026 — what's current
Rising rates have compressed cash flow on new acquisitions. Many investors are pivoting to value-add deals (BRRRR strategy) where forced appreciation and rent increases create return that flat purchases no longer offer.
Frequently asked.
$200+/month per unit after ALL expenses including reserves. Beware deals showing $50/month — one repair eats the year's profit.
Most rental expenses are tax-deductible against rental income. Depreciation provides additional shelter. Rental real estate is one of the most tax-advantaged investments in US tax code.
Compute cash-on-cash without appreciation as the safe baseline. Appreciation is a bonus, not a guarantee. Deals that only work with appreciation are speculation, not investing.
No. Calculations run entirely in your browser.