Corie Adams
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Investment

Investment Property Calculator

A rental either produces cash flow or it doesn't, and the honest version of that calculation includes vacancy, maintenance and management, even if you plan to self-manage.

DSCR matters separately: it's how investor lenders qualify the loan on the property rather than on your personal income.

Your numbers

$245,000
$2,100
$1,800
$5,000

Your results

Monthly cash flow

-$196

Negative, the property costs you monthly

Cap rate
5.59%
Cash-on-cash return
-4%
DSCR
1.14Financeable, thin
Monthly P&I
$1,337
Operating expenses
$959
Total cash invested
$58,900
Annual NOI
$13,691

What happens if you change this

At $2,100 rent, this property loses $196 a month after debt service, with a 5.59% cap rate and -4% cash-on-cash on $58,900 invested. The DSCR of 1.14 is what an investor lender underwrites, financeable but thin; a larger down payment raises it. Raising the down payment to 25% would improve DSCR and cash flow but lower your cash-on-cash return, that's the core trade in rental financing.

Keep these numbers

Your results are yours already. If it helps, send them to yourself, or have Corie look at the same scenario and tell you what she would change.

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Keep learning

Questions people ask

What DSCR do lenders want?
Most DSCR programs look for 1.0 or better, with the best pricing at 1.2 and above. Below 1.0 some lenders still lend with compensating factors, at a cost.
Should I count management if I self-manage?
Yes, if you want an honest number. Your time has value, and one day you may hire it out. A deal that only works because you work for free is fragile.

Estimates for education only, not a loan approval, rate quote, or commitment to lend. Actual figures depend on credit, property, program guidelines, and market conditions at the time of lock. Corie Adams · NMLS #1875205 · Network Funding, LP · NMLS ID #2297 · Equal Housing Opportunity.

In plain English

It runs a rental through the numbers that decide whether it works: cash flow, cash-on-cash return and the reserves behind it.

When to use it

  • You are evaluating a specific listing as a rental
  • You are comparing two properties in different markets
  • You want to know what rent the property needs to break even

Common mistakes

Assuming full occupancy
Vacancy, turnover and maintenance are certainties. Budget them as line items.
Skipping management costs
Even self-managing has a cost in time. Price it in so the numbers survive a handoff.
Using owner-occupied loan terms
Investment financing carries different rates, down payments and reserve requirements.

Recommended next steps

  1. 01See investor loan structures
  2. 02Talk With Corie

Turn the estimate into real numbers.

A pre-approval replaces the assumptions above with your actual income, credit, and the terms available to you today.

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