Why it matters: Shows the property's intrinsic ability to generate income. 2. Cap Rate (Capitalization Rate) (Annual NOI / Purchase Price) x 100
Money left over after all bills are paid. buy and hold real estate calculator
Why it matters: Allows you to compare different properties quickly. 3. Cash on Cash Return (CoC) Why it matters: Shows the property's intrinsic ability
Landlord-specific policy (higher than homeowners). Property Management: Usually 8–12% of monthly rent. Maintenance: 1% of property value per year, divided by 12. buy and hold real estate calculator
Total Income - Operating Expenses (Do not include mortgage).
(Annual Cash Flow / Total Initial Cash Invested) x 100
Benchmark: Usually ranges from 4% to 10% depending on the market.