Rental Property Investment Calculator

It varies significantly by market and property type — what's considered attractive in a lower-priced secondary market may look unremarkable in a major city with high land values. Compare cap rates against similar properties in the same specific market rather than a single national benchmark.

NOI (Net Operating Income) is a property-level metric meant to be comparable regardless of how a specific buyer finances the purchase. Cash flow and cash-on-cash return, which do include the mortgage payment, tell you what's actually left in your pocket for your specific financing.

Not necessarily — some investors accept negative or breakeven cash flow in exchange for expected appreciation or equity paydown over time. It does mean you'd need to cover the shortfall from other income each month, which is worth planning for explicitly rather than discovering after closing.