📊 Rental Property Analysis Generator

A "good" cap rate depends on your market. In expensive coastal cities (NYC, SF, LA), cap rates of 3–5% are common. In Midwest and Southeast markets, investors often target 6–10%. Higher cap rates mean more income relative to price, but also often indicate more risk or lower appreciation potential. Compare your cap rate to comparable properties in the same market.

Cash-on-cash (CoC) return measures your annual cash flow relative to the actual cash you invested (down payment + closing costs). Formula: Annual Cash Flow ÷ Total Cash Invested × 100. For example, if you invested $60,000 and earn $6,000/year in cash flow, your CoC is 10%. This is often more useful than cap rate for leveraged investments because it accounts for your financing costs.

The financial metrics (cap rate, cash flow, CoC return) are calculated directly from your inputs using standard real estate formulas — they are mathematically accurate. The market assessment, risk analysis, and 5-year projections are AI-generated estimates based on general market knowledge, not live data. Always verify market rents and expense assumptions with local research before making investment decisions.

Standard expenses include: property taxes, insurance, property management (typically 8–12% of rent), repairs and maintenance (budget 5–10% of rent annually), vacancy allowance (5–8%), capital expenditures reserve (roof, HVAC, appliances — budget 5–10% of rent). Common mistakes: forgetting CapEx reserves and vacancy in the analysis.

The 1% rule says a rental property should generate monthly rent equal to at least 1% of the purchase price. Example: a $200,000 property should rent for at least $2,000/month. It's a quick screening filter, not a definitive analysis. In expensive markets, properties rarely meet the 1% rule. Use a full cash flow analysis (like this generator) for actual investment decisions.