This helps you see how hard your cash is working compared to other investments like the stock market. Quick "Back of the Envelope" Rules
A higher cap rate (e.g., 6–10%) often indicates a better return but may come with higher risk. buying rental property calculator
Total Monthly Income minus Total Monthly Expenses (including mortgage). Positive cash flow is generally the goal for most "buy and hold" investors. This helps you see how hard your cash
A rule of thumb suggesting that a property should rent for at least 1% to 2% of its total purchase price per month. Positive cash flow is generally the goal for
Specifically, the "Cash-on-Cash Return," which measures the annual profit relative to the actual cash you invested.
Cap Rate=Net Operating Income (NOI)Property Purchase PriceCap Rate equals the fraction with numerator Net Operating Income (NOI) and denominator Property Purchase Price end-fraction