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Rental ROI Calculator

Calculate cap rate, cash-on-cash return, and monthly cash flow for any South Florida investment property — then get an AI-powered analysis of the deal.

Purchase Details

$450,000
$50K$30M
%
%
%

Rental Income

$2,800
$500$150K
%

Monthly Expenses

%
%

Monthly Cash Flow

-$1,333

Negative cash flow · -$16,000/year

Investment Metrics

Annual Cash Flow

-$16,000

Net Operating Income

i

$969

Monthly income after all operating expenses (taxes, insurance, HOA, maintenance, management) but BEFORE mortgage payments. This is the number lenders and institutional investors use to evaluate a deal independent of financing structure.

Cap Rate

i

2.58%

Net Operating Income ÷ Purchase Price. South Florida benchmark: ≥5% is competitive for buy-and-hold. Below 4% is typically an appreciation play.

Cash-on-Cash Return

i

-12.70%

Annual cash flow ÷ total cash invested (down payment + closing costs). Target ≥6% for a solid leveraged return.

DSCR

i

0.42

Debt Service Coverage Ratio: Annual NOI ÷ Annual Mortgage Payments. Most lenders require ≥1.25 to qualify for an investment property loan. Below 1.0 means the property doesn't cover its own debt.

Gross Rent Multiplier

i

13.4x

Purchase price ÷ annual gross rent. Lower is better. South Florida: <15x is favorable, >20x suggests rent is low relative to price.

Total Cash Invested

$126,000

DSCR Loan Eligibility

DSCR 0.42 — Does Not Qualify

The property's income doesn't cover its debt payments at current numbers. Lenders typically require DSCR ≥1.25. Consider a higher down payment or higher rent to improve this ratio.

Monthly Breakdown

Gross Rent$2,800
Vacancy (5%)$140
Effective Income$2,660
Operating Expenses$1,691
Net Operating Income$969
Mortgage Payment$2,302
Cash Flow$1,333

AI Deal Analysis

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