Investment Property Analyzer
Does the rental math actually work?
Property & financing
$
$
%
yr
$
Income & operating costs
$/ mo
%
%
% / yr
% / yr
% / yr
$/ yr
$/ mo
Long-term assumptions
% / yr
% / yr
% / yr
% / yr
%
yr
%
%
$
Year-1 monthly cash flow
$-917
Annual: $-11,005 · Cap rate 3.54% · DSCR (P&I) 0.56 · IRR -0.65%
Gross rent (yr 1)$33,600
Vacancy loss−$1,680
Operating expenses−$17,754
NOI$14,166
Debt service−$25,172
Cash flow$-11,005
Cap rate
3.54%
NOI / purchase price
Cash-on-cash (yr 1)
-10.38%
$-11,005 / $106,000 cash in
DSCR (P&I)
0.56
lender uses PITIA: 0.44
Year-1 cash flow
$-11,005
before tax
Total return at yr 10
$-9,802
after exit tax
IRR
-0.65%
time-weighted
Wealth build: cash flow + equity over time
Total return if sold (cash flow + equity − costs) Equity built Cumulative after-tax cash flow
| Yr | Home value | Equity | NOI | Pre-tax CF | After-tax CF | Sale net | Total return |
|---|---|---|---|---|---|---|---|
| 1 | $412,000 | $114,766 | $13,776 | $-11,395 | $-11,395 | $85,926 | $-31,470 |
| 2 | $424,360 | $130,106 | $14,080 | $-11,092 | $-11,092 | $96,098 | $-32,389 |
| 3 | $437,091 | $146,048 | $14,383 | $-10,788 | $-10,788 | $106,099 | $-33,176 |
| 4 | $450,204 | $162,622 | $14,686 | $-10,485 | $-10,485 | $117,133 | $-32,628 |
| 5 | $463,710 | $179,857 | $14,989 | $-10,183 | $-10,183 | $128,747 | $-31,198 |
| 6 | $477,621 | $197,788 | $15,289 | $-9,883 | $-9,883 | $140,970 | $-28,858 |
| 7 | $491,950 | $216,447 | $15,586 | $-9,586 | $-9,586 | $153,835 | $-25,579 |
| 8 | $506,708 | $235,873 | $15,879 | $-9,293 | $-9,293 | $167,376 | $-21,331 |
| 9 | $521,909 | $256,104 | $16,166 | $-9,005 | $-9,005 | $181,630 | $-16,083 |
| 10 | $537,567 | $277,182 | $16,448 | $-8,724 | $-8,724 | $196,634 | $-9,802 |
Key thresholds: Cap rate ≥7% is generally good (varies by market — Bay Area normal at 4%, Cleveland 8%+); ≤5% is thin. Cash-on-cash ≥8% beats most index funds. DSCR ≥1.25 qualifies for non-QM DSCR loans — but lenders use PITIA in the denominator (P&I + tax + ins + HOA), not pure P&I, so your actual qualifying DSCR is the smaller PITIA number shown above. Tax model: rental income taxed at marginal; depreciation creates losses that hit the §469(i) passive-loss allowance ($25k below $100k AGI, phased out by $150k — set your AGI above) — losses above the allowance suspend (no current cash benefit). Sale triggers depreciation recapture (lesser of 25% or marginal) on the §1250 unrecaptured slice plus LT cap gains (0/15/20% + NIIT) on the rest. IRR is computed on the cash-flow stream including initial outlay and the after-tax sale at horizon. Not modeled: 1031 exchange, QBI/§199A, suspended-loss carryforward, state taxes, BRRRR refinance.