Analyze rental property income, expenses, cash flow, cap rate, and cash-on-cash return.
Income
Monthly Expenses
Investment
3.36% cash-on-cash return
| Gross Annual Rent | $24,000 |
| Vacancy Loss | -$1,920 |
| Effective Gross Income | $22,080 |
| Operating Expenses | -$6,000 |
| Net Operating Income (NOI) | $16,080 |
| Annual Cash Flow | $1,680 |
| Monthly Cash Flow | $140 |
| Cash-on-Cash Return | 3.36% |
| Cap Rate | 6.43% |
| Gross Yield | 9.60% |
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NOI = Effective Gross Income − Operating Expenses
Cash Flow = NOI − Debt Service
Cash-on-Cash = Annual Cash Flow / Cash Invested × 100
Most investors target 8–12% cash-on-cash return. Anything above 8% is generally considered good in most markets. High-cost areas may yield 4–6%.
NOI = Gross Rental Income − Operating Expenses (before mortgage). It measures property income independent of financing.
Property tax, insurance, maintenance (1% of value/year), vacancy (5–10%), property management (8–12%), repairs, and capital expenditures.
Monthly rent should be at least 1% of purchase price. A $200,000 property should rent for $2,000/month. Markets vary — coastal cities rarely hit 1%.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.