Deal Analyzer — Analyze Any Real Estate Deal in 60 Seconds
Enter purchase price, monthly rent, rehab costs, and expenses — get an instant verdict: cash flow, cap rate, cash-on-cash return, DSCR, and a 5-year ROI projection. Target benchmarks: positive monthly cash flow, 8%+ CoC return, DSCR above 1.25. Most analyses complete in under 60 seconds, no signup required.
Tool Demo — How It Works (Visual Walkthrough)
Follow these steps to analyze any deal in under 60 seconds.
📊 Monthly Expense Breakdown
📈 5-Year Cash Flow Projection (3% annual rent & value growth assumed)
| Year | Annual Rent | Gross Income | Operating Expenses | Mortgage | Net Cash Flow | Cumulative CF |
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How to Analyze a Real Estate Deal
Analyzing a real estate deal means translating raw property numbers into a clear answer: does this investment make financial sense at this price? Professional investors use a consistent framework — you input the numbers, the math tells you whether to buy or pass. Here's how each metric works.
Step 1: Calculate Your True All-In Cost
Your total cash invested is more than just the down payment. Add closing costs (typically 2–4% of purchase price), any rehab or renovation budget, and reserves you'll need for the first 3–6 months of ownership. This is your real equity at risk — and it's the denominator in your cash-on-cash return calculation.
Step 2: Project Realistic Income
Start with market rents — not wishful thinking. Research comparable rentals in the same zip code on Zillow, Apartments.com, and your local MLS. Then apply a vacancy factor: even in tight markets, budget 5–6% for turnover and leasing time. This gives you Effective Gross Income (EGI), the rent you'll actually collect over a year.
Step 3: Account for Every Expense
New investors consistently underestimate expenses. Use these benchmarks:
- Maintenance: 1–2% of purchase price per year. Older properties need more.
- Vacancy: 5–8% for single-family, 6–10% for multifamily.
- Property Management: 8–12% of collected rents if hiring a PM company.
- CapEx Reserve: Budget separately for roof, HVAC, and major systems.
The mortgage is a real expense too — but it's treated separately from operating expenses when calculating cap rate, since cap rate measures the property's return independent of financing.
Step 4: Calculate the Key Metrics
Cap Rate = NOI ÷ Purchase Price. This tells you the unlevered yield — what the property returns before financing. Compare to other local sales to gauge relative value.
Cash-on-Cash Return = Annual Cash Flow ÷ Total Cash Invested. This is your actual yield on the money you put in — the most important number for leveraged investors. Target 8–12% minimum.
Debt Coverage Ratio (DCR) = NOI ÷ Annual Debt Service. Lenders require 1.25 minimum; 1.35+ is preferred. Below 1.0 means the property can't cover its own mortgage from rents alone.
Gross Rent Multiplier (GRM) = Purchase Price ÷ Annual Gross Rent. A quick screening metric — lower is better. Under 10 is generally favorable; above 15 warrants scrutiny.
Use this analyzer alongside our Cap Rate Calculator, Cash Flow Calculator, and the complete BRRRR Calculator Guide for a full investment analysis workflow. Once you own the property, track it alongside your other holdings in the Investment Tracker.