Rental Property ROI
Comprehensive rental property investment analysis with cash flow projections and ROI metrics.
As % of purchase price
Expected empty months per year
% of rent
% of property value annually
% of property value
% of property value
Poor Investment
Negative cash flow or subpar returns
$-710.57
4.26%
-9.27%
106.2%
Annual Cash Flow
$-8,526.82
Net Operating Income
$17,020.80
Gross Yield
8.40%
| Year | Property Value | Equity | Cash Flow | Total Return | ROI |
|---|---|---|---|---|---|
| 1 | $412,000.00 | $95,250.59 | $-8,526.82 | $6,723.78 | 7.3% |
| 2 | $424,360.00 | $111,096.17 | $-8,526.82 | $14,042.54 | 15.3% |
| 3 | $437,090.80 | $127,564.52 | $-8,526.82 | $21,984.07 | 23.9% |
| 4 | $450,203.52 | $144,684.98 | $-8,526.82 | $30,577.72 | 33.2% |
| 5 | $463,709.63 | $162,488.54 | $-8,526.82 | $39,854.46 | 43.3% |
| 6 | $477,620.92 | $181,007.95 | $-8,526.82 | $49,847.06 | 54.2% |
| 7 | $491,949.55 | $200,277.82 | $-8,526.82 | $60,590.11 | 65.9% |
| 8 | $506,708.03 | $220,334.75 | $-8,526.82 | $72,120.23 | 78.4% |
| 9 | $521,909.27 | $241,217.46 | $-8,526.82 | $84,476.12 | 91.8% |
| 10 | $537,566.55 | $262,966.92 | $-8,526.82 | $97,698.77 | 106.2% |
Investment Property Metrics Explained
Cap Rate
Net Operating Income divided by property value. A quick measure of property yield without considering financing. Target 8%+ for most markets.
Cash-on-Cash Return
Annual cash flow divided by total cash invested. This measures your actual return on the capital you put in. Target 8-12% for a solid investment.
DSCR
Debt Service Coverage Ratio - NOI divided by annual mortgage. Lenders typically require 1.25x minimum. Higher is better for safety margin.
1% Rule
Monthly rent should be at least 1% of purchase price for positive cash flow. This property: 0.70%