How It Works
NOI=gross rent*(1-vacancy)-operating expenses. Cap rate=NOI/price. Cash flow=NOI-annual debt service.
Cash-on-cash return=cash flow/(down payment+closing costs). Sale equity=appreciated value-selling costs-remaining loan.
Scope and Limitations
- Assumes constant rent/expenses and fixed financing, with no tax effects or refinancing. Include maintenance, insurance and property tax in operating expenses. Appreciation is a scenario.
Reference Sources
FAQs
How does this calculator work?
NOI=gross rent*(1-vacancy)-operating expenses. Cap rate=NOI/price. Cash flow=NOI-annual debt service.
What assumptions should I check?
Assumes constant rent/expenses and fixed financing, with no tax effects or refinancing. Include maintenance, insurance and property tax in operating expenses. Appreciation is a scenario. Cash-on-cash return=cash flow/(down payment+closing costs). Sale equity=appreciated value-selling costs-remaining loan.