Measure the property from more than one angle
A useful investment review starts with realistic rent, vacancy and operating-expense assumptions. Cap rate estimates the property’s annual operating return before mortgage payments. DSCR measures how the property’s gross rent compares with principal, interest, taxes, insurance and applicable association fees.
Evaluate your own rental-property scenario
Enter your assumptions below to estimate net operating income, cap rate, monthly debt service, DSCR, cash flow and cash-on-cash return.
Estimates are educational and depend on the information entered. They are not an appraisal, loan approval, tax advice or investment recommendation. Actual lender DSCR calculations and eligible rental income vary by program.
What to know
A strong rental-property analysis considers income, vacancy, operating expenses, financing costs, cash flow and the investor’s goals. Cap rate estimates the property’s operating return before mortgage payments, while DSCR compares qualifying rent with the property’s monthly housing expense.
Start with a conversation
Tell me where the property is, how you plan to use it and what you want the loan to accomplish. I can help you understand which details lenders will review and compare available paths.
How do you know if a property is a good investment?
A property may be a good investment when its expected income, expenses, financing, risks and long-term strategy align with the investor’s goals. No single ratio can determine whether an investment is suitable.