Will This Rental Property Actually Make Money?

Rental real estate is one of the most popular wealth-building vehicles — but most aspiring landlords dramatically underestimate expenses and overestimate net income. The difference between a cash-flowing property and a money pit often comes down to a few key metrics that most buyers never calculate before closing. This calculator runs a complete rental property analysis: gross rental income, vacancy allowance, operating expenses (taxes, insurance, maintenance, management, utilities), net operating income (NOI), mortgage debt service, and — most critically — monthly cash flow after all expenses and mortgage payments. It then computes three key investment metrics: Cap Rate (NOI / purchase price, a measure of property yield independent of financing), Cash-on-Cash Return (annual cash flow / total cash invested, the true return on your equity), and the Gross Rent Multiplier (purchase price / annual rent, a quick valuation screen). The difference between gross rent and actual cash flow is almost always larger than new investors expect. Vacancy costs alone typically run 5–10% of gross rent. Maintenance averages 1% of property value per year. Management fees are 8–12% of rent. Property taxes vary dramatically by state. Getting these right is the difference between a good investment and an expensive learning experience.