Free Tool
Investment PropertyAnalyzer
Cap rate, cash on cash return, cash flow, DSCR and break even rent for any rental, from a single condo to a fourplex and up.
Cap Rate · Monthly Cash Flow
4.30% · −$1,826
Net operating income of $43,028 a year on a $1,000,000 price.
The Property
Parking, laundry, storage.
Financing
Default rate is the Freddie Mac PMMS 30 year average for October 29, 2026, which tracks homes people live in. Investment loans usually price higher; use your lender's quote.
Only used for mortgage insurance below 20% down.
Operating Costs
U.S. rental vacancy was 7.3% in Q2 2026 (Census).
Typical county rate; check for Mello-Roos.
Management is a share of collected rent; repairs and capital reserves are a share of scheduled rent. Set management to 0 if you self manage. Reserves are taken from cash flow, not NOI, so the cap rate compares with listings.
Cap Rate · Monthly Cash Flow
4.30% · −$1,826
Net operating income of $43,028 a year on a $1,000,000 price.
Estimates only, based on the assumptions you enter. Verify rents, expenses, taxes and loan terms before you buy. Rami Tannous is a licensed REALTOR® (DRE #02334866) with Nick Sadek Sotheby's International Realty, not a lender, attorney or tax advisor. This is not a loan offer or tax advice. Equal Housing Opportunity.
How It Works
- Net operating income (NOI): rent and other income, less vacancy, less operating costs (tax, insurance, HOA, owner paid utilities, management and repairs). It excludes the mortgage and capital reserves, the way listing cap rates are quoted.
- Cap rate: NOI divided by the price. It compares properties regardless of how they are financed.
- Cash flow and cash on cash: NOI minus capital reserves, principal, interest and any mortgage insurance. Cash on cash divides a year of cash flow by everything you put in: down payment, closing costs and upfront repairs.
- DSCR: DSCR loan programs divide gross rent by the full payment (principal, interest, tax, insurance and HOA). 1.0 means rent exactly covers the payment, before vacancy, management and repairs; most lenders want at least 1.0 and price better at 1.25 or higher. We also show NOI divided by debt service, the commercial measure.
- Gross rent multiplier: price divided by a year of gross rent, a quick screen for small multifamily.
- Down payment: conventional investment purchases allow up to 85% loan to value on one unit and 75% on two to four units, on loans within the conforming limit; jumbo investment loans usually need 25% or more down. Five or more units use commercial loans.
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