Does this property generate enough income to cover all expenses - mortgage, taxes, insurance, management, maintenance, and still put money in your pocket every month? The Deal Analyzer answers this.

What happens if a tenant leaves and the property sits vacant for two months? What if rent drops because the market softens? What if a major repair hits unexpectedly? The Stress Test answers this.

Is the purchase price justified by what the property generates? The cap rate, GRM, and the 70% Rule on the Rehab Calculator answer this question for different deal types.

What is left every month after every expense including your mortgage is paid. Positive means the property puts money in your pocket. Negative means it costs you money every month.

Annual cash flow divided by total cash invested. This tells you what percentage return you are getting on the money you actually put in. The most important metric for comparing deals.

Net Operating Income divided by purchase price. Shows the property's return independent of financing. Useful for comparing properties in the same market. Does not account for your mortgage.

Net Operating Income divided by annual mortgage payment. Lenders use this to determine if the property generates enough income to cover the debt. Below 1.0 means the rent cannot cover the mortgage alone.

Purchase price divided by annual gross rent. A quick screening tool. Lower means you are paying less per dollar of rent the property generates.

Look up on the county assessor's website before any offer. They are public record. Enter the annual amount.

Different from homeowner's insurance. More expensive. Get a real quote. Budget $1,000-2,500 annually for most single family properties.

Even if you plan to self-manage, include this. A deal that only works if you personally manage it is a job, not an investment. Budget 8-12% of collected rent.

Budget 5-10% of monthly rent. Older homes need more. The roof will need replacing. The water heater will fail. Budget before it happens, not after.

Budget for the time between tenants. The national average is 7-8%. In strong rental markets it may be 3-5%. In softer markets, 10-15%. Always budget conservatively.

The most used formula in fix-and-flip investing. Maximum Allowable Offer = After Repair Value × 70% minus Repair Costs. This leaves room for holding costs, selling costs, and profit.

What the property will be worth after all renovations are complete. Research comparable homes nearby that sold recently in updated condition. This is the most important number in any rehab deal. Overestimate it and your profit disappears.

Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property, renovate it, rent it, then refinance based on the new appraised value. If the ARV is high enough, the refinance pulls out most or all of your original cash. Then you use that cash to buy the next property.

Short-term loans used to purchase and renovate. Higher interest rates (8-14%) because they are quick and flexible. You refinance into conventional financing after rehab is complete. Budget holding costs carefully - every extra month costs money.

Vacancy rises 5%. Rent drops 10%. Expenses climb 15%. This represents a mild softening of the market - a recession hint, a neighborhood shift, or one bad tenant cycle. If your deal breaks here, it is fragile.

Vacancy rises 10%. Rent drops 15%. Expenses climb 25%. A real market correction. The kind that happens every 7-10 years. Your deal should at minimum survive this without going deeply negative.

Vacancy rises 20%. Rent drops 20%. Expenses climb 35%. A severe recession scenario. Most deals break here. The question is how badly - a small negative cash flow you can cover from savings, or a catastrophic loss you cannot sustain.

The deal scores well across multiple metrics. Cash flow is positive. CoC at or above 8%. DSCR above 1.25. Does not mean proceed blindly - always verify rent comps, get an inspection, confirm financing. But the numbers support moving forward.

One or two metrics are below target but the deal is not necessarily bad. The tool will tell you exactly which numbers need attention and what you could adjust to strengthen it. Negotiate the price, verify rent comps, or reconsider expenses.

Multiple metrics are failing. The deal as structured does not make financial sense. This does not always mean walk away - it means the price needs to come down, the rent needs to be higher, or the expenses need to be reduced before this deal works. Pass on the price, not necessarily the property.

The tool displays in USD. If analyzing a property in another currency, enter figures in your local currency. The ratios and percentages are currency-neutral as long as you are consistent throughout the analysis.

Benchmarks reflect US investor standards. In some international markets, cap rates may be lower in high-demand cities and higher in emerging markets. Research local benchmarks for your specific market.

This tool does not calculate tax implications. Tax treatment of rental income, depreciation, and capital gains varies significantly by country and individual situation. Always consult a local tax professional before making investment decisions.