Real Estate Deal Analyzer
Work through every number on any rental property — cash flow, returns, and exactly what you walk away with at exit.
What This Calculator Does
Supply your purchase details and the analyzer assembles a complete investment picture: monthly cash flow, cap rate, cash-on-cash ROI, DSCR (Debt Service Coverage Ratio), projected equity growth, and the total profit you can expect at sale — all within a single view.
Who Is This For
For investors who need more than a back-of-napkin estimate before committing to a rental, landlords measuring prospective acquisitions against their portfolio benchmarks, and anyone stress-testing the financial case for an investment property in Miami or any other market.
How It Works
Enter the purchase price, down payment amount, expected monthly rental income, and your operating expense figures. Set your target holding period and an appreciation assumption, then select Calculate to generate the full suite of investment metrics.
Frequently Asked Questions
What is a good cap rate?
Cap rates vary considerably by submarket and asset class. Miami residential properties have historically settled in the 4-7% range. A higher cap rate points to stronger income relative to price, though it can equally signal elevated risk or limited upside from appreciation.
What does DSCR mean?
DSCR — the Debt Service Coverage Ratio — reveals whether a property's rental income is enough to service its debt. A reading above 1.0 confirms that rent covers the mortgage payment, and most lenders financing investment properties set their minimum at 1.2-1.25.
How is cash-on-cash ROI calculated?
The formula is refreshingly direct: Annual Cash Flow divided by Total Cash Invested. It isolates the return on the actual dollars you commit, deliberately leaving aside mortgage paydown and appreciation so you see income performance alone. Investors typically hold 8-12% as their benchmark.
Should I include appreciation in my analysis?
Miami's record of 3-5% annual appreciation is well worth modeling, though it's wiser to treat it as a bonus rather than a given. Base your projections on conservative appreciation figures and make certain the cash flow stands on its own — so the investment holds up even if appreciation disappoints.