Real Estate Investment Analysis

Analyze potential real estate investments and calculate key metrics.

Purchase Details

$
$
$
$

Income & Expenses

$
$
$
$
%
%

Financing & Growth

%
years
%
%

Investment Metrics

Cap Rate

5.1%

Net Operating Income / Property Value

Cash on Cash Return

-1.6%

Annual Cash Flow / Total Investment

Total ROI

12.7%

Including appreciation

Net Operating Income

$25,600

Annual NOI

Debt Service Coverage

0.939

NOI / Annual Mortgage Payments

Break Even (Years)

-63.487

Years to recoup investment

Understanding the Metrics

  • Cap Rate > 5% typically indicates good value
  • Cash on Cash > 8% is considered favorable
  • DSCR > 1.25 is preferred by most lenders
  • Account for future repairs and vacancies