Real Estate Deal Analyzer
Evaluate investment properties with comprehensive financial analysis and exit projections.
Projection Settings
Enter your details and click "Calculate" to analyze this deal
What This Calculator Does
This calculator provides a complete financial analysis of rental property investments, including monthly cash flow, cap rate, cash-on-cash ROI, DSCR (Debt Service Coverage Ratio), and projected returns at sale including equity growth and total profit.
Who Is This For
Real estate investors analyzing rental property deals, landlords considering new acquisitions, and anyone evaluating the financial viability of an investment property in Miami or elsewhere.
How It Works
Enter the purchase price, down payment, rental income, and operating expenses. Adjust the holding period and appreciation rate for exit projections. Click Calculate to see comprehensive investment metrics.
Frequently Asked Questions
What is a good cap rate?
Cap rates vary by market and property type. In Miami, residential properties typically see 4-7% cap rates. Higher cap rates suggest higher returns but may indicate more risk or lower appreciation potential.
What does DSCR mean?
Debt Service Coverage Ratio measures whether rental income covers debt payments. A DSCR above 1.0 means income exceeds mortgage payments. Lenders typically require 1.2-1.25 for investment loans.
How is cash-on-cash ROI calculated?
Cash-on-cash ROI = Annual Cash Flow / Total Cash Invested. It measures the return on your actual cash invested, excluding mortgage paydown and appreciation. A good cash-on-cash return is typically 8-12%.
Should I include appreciation in my analysis?
Appreciation is speculative but historically significant in Miami. Use conservative estimates (3-5% annually) for projections. Strong cash flow provides safety if appreciation does not materialize.