Investor tools
Will this rental pay?
A rental property earns three ways: monthly cash flow, loan paydown, and appreciation. Around here the first one usually starts negative, and pretending otherwise is how investors get hurt. Put in your numbers and see the whole position, month by month, for 40 years. Everything is pre-tax.
Cash flow in year one
Cap rate, year one
Net operating income over price, before the loan
Cash-on-cash, year one
Year-one cash flow against your down payment
Monthly payment
Principal and interest, 30-year fixed
Cash-flow positive
When the rent starts covering everything
The whole position
Total profit if you sold Cumulative cash flow
Year by year
| Year | Property value | Loan balance | Cash flow that year | Cumulative cash flow | Profit if sold |
|---|