Investment Analysis
Cap rate, cash-on-cash return and a projection to the sale for a rental property. Buying to live in it? Open the mortgage calculator
Cap Rate
6.08%
Cash-on-Cash
−0.40%
| Line | Monthly | Annual |
|---|---|---|
| Rent | $3,200 | $38,400 |
| Vacancy (5%) | −$160 | −$1,920 |
| Operating Expenses | −$1,015 | −$12,176 |
| Net Operating Income | $2,025 | $24,304 |
| Loan Payments | −$2,063 | −$24,754 |
| Cash Flow | −$37 | −$450 |
- Cash Invested$112,000
- Loan$300,000
10-Year Projection
Held 10 years and sold at the end of year 10. Pre-tax, in each year's own dollars; an estimate, never a forecast.
- Sale Price (Yr 10)
- $537,567
- Total Profit
- $164,990
- Equity Multiple
- 2.47×
- Annualized Return
- 9.80%
Dashed line: cash invested, $112,000
Year-by-year table
| Year | Income | NOI | Cash Flow | Cumulative | Value | Loan | Equity |
|---|---|---|---|---|---|---|---|
| 1 | $38,400 | $24,304 | −$450 | −$450 | $412,000 | $297,141 | $114,859 |
| 2 | $39,552 | $25,033 | $279 | −$171 | $424,360 | $294,066 | $130,294 |
| 3 | $40,739 | $25,784 | $1,030 | $859 | $437,091 | $290,757 | $146,334 |
| 4 | $41,961 | $26,558 | $1,804 | $2,663 | $450,204 | $287,198 | $163,006 |
| 5 | $43,220 | $27,354 | $2,600 | $5,263 | $463,710 | $283,368 | $180,341 |
| 6 | $44,516 | $28,175 | $3,421 | $8,684 | $477,621 | $279,249 | $198,372 |
| 7 | $45,852 | $29,020 | $4,266 | $12,951 | $491,950 | $274,817 | $217,133 |
| 8 | $47,227 | $29,891 | $5,137 | $18,087 | $506,708 | $270,049 | $236,660 |
| 9 | $48,644 | $30,788 | $6,034 | $24,121 | $521,909 | $264,919 | $256,990 |
| 10 | $50,103 | $31,711 | $6,957 | $31,078 | $537,567 | $259,401 | $278,166 |
Get in touch
Ready to take the next step?
Contact Sandra Vargas to go over this analysis, financing options, or rental properties that fit your numbers.