What is a good cash-on-cash return for rental property?

Most investors target 8–12% cash-on-cash return. Below 6% is generally considered weak; above 12% is strong, especially in competitive markets. The benchmark varies by market — high-appreciation coastal markets often trade lower cash-on-cash for appreciation upside.

What is a good cap rate for an investment property?

Cap rates vary by market and asset class. Single-family rentals in primary markets typically trade at 4–6% cap rates. Secondary and tertiary markets often yield 6–9%. A "good" cap rate depends on your market — compare to similar local sales rather than national benchmarks.

What expenses should I include when analyzing a rental deal?

Include: property taxes, insurance, HOA fees, maintenance (budget 1–2% of value/year), vacancy (budget 5–8%), property management (8–12% of rents), and your mortgage payment. New investors often underestimate maintenance and vacancy — use conservative estimates.

What is the 1% rule in real estate investing?

The 1% rule says monthly rent should be at least 1% of the purchase price. A $200,000 property should rent for $2,000/month. It's a quick screening filter, not a full analysis — always run a complete deal analysis including all expenses before making a decision.

How do I calculate NOI on a rental property?

NOI (Net Operating Income) = Gross Rental Income × (1 − vacancy rate) − all operating expenses. Operating expenses include taxes, insurance, HOA, maintenance, and property management — but NOT the mortgage payment. NOI is used to calculate cap rate: Cap Rate = NOI ÷ Purchase Price.

🏠 Free Investor Tool · Updated May 2026

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Tool Demo — How It Works (Visual Walkthrough)

Follow these steps to analyze any deal in under 60 seconds.

Step 1

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Enter Purchase Details

Input purchase price, down payment %, and closing costs.

Step 2

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Set Financing Terms

Enter loan amount, interest rate, and mortgage term.

Step 3

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Add Income & Expenses

Enter monthly rent, taxes, insurance, vacancy, and management fees.

Step 4

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Get Buy/Pass Verdict

Instantly see cash flow, cap rate, CoC return, and a clear deal verdict.

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📊 Property Inputs

Purchase Price ($)

Down Payment (%)

Interest Rate (%)

Loan Term (years)

Rehab Cost ($)

ARV — After Repair Value ($)

Holding Period (months)

Monthly Rent ($)

Monthly Operating Expenses ($)

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Deal Analyzer — Analyze Any Real Estate Deal in 60 Seconds

Tool Demo — How It Works (Visual Walkthrough)