Buy And Hold Real Estate Calculator Direct

Why it matters: This is the most critical metric. It tells you exactly what your "cash" is earning compared to a savings account or the stock market. 💡 Example Calculation $200,000 house ($50,000 total cash invested). Rent: $2,000 / month. Total Expenses + Mortgage: $1,700 / month. Monthly Cash Flow: $300. Annual Cash Flow: $3,600. Cash on Cash Return: 7.2% ($3,600 / $50,000).

Investors often use the : expect 50% of gross rent to go toward expenses (excluding the mortgage). Mortgage (P&I): Principal and interest on your loan. Property Taxes: Monthly escrow amount. buy and hold real estate calculator

The return on your initial "cash out of pocket." 📋 Phase 1: Initial Acquisition Costs Why it matters: This is the most critical metric

Save 5–8% of rent to cover months without a tenant. Rent: $2,000 / month

Why it matters: Shows the property's intrinsic ability to generate income. 2. Cap Rate (Capitalization Rate) (Annual NOI / Purchase Price) x 100

This is the total "cash to close." You need this number to calculate your return on investment. The agreed price of the home. Down Payment: Typically 20–25% for investment loans.

(Annual Cash Flow / Total Initial Cash Invested) x 100