Question 1

What is a good cap rate for rental property?

Accepted Answer

Cap rates vary by market and property type. Generally, 4-6% is common in expensive markets, 6-8% in moderate markets, and 8-12% in higher-risk areas. Higher cap rates mean higher returns but often more risk or management intensity.

Question 2

How do I calculate cash-on-cash return?

Accepted Answer

Cash-on-cash return = Annual pre-tax cash flow ÷ Total cash invested. If you invest $50,000 (down payment + closing costs + repairs) and net $5,000/year after all expenses, your cash-on-cash return is 10%.

Question 3

What is the BRRRR strategy?

Accepted Answer

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy undervalued property, renovate to increase value, rent it out, refinance to pull out your initial investment, then repeat with the recovered capital.

Question 4

What expenses should I include in rental property analysis?

Accepted Answer

Include: mortgage payment, property taxes, insurance, property management (8-10%), vacancy (5-10%), maintenance (5-10%), capital expenditures (roofs, HVAC), HOA fees, utilities you pay, and lawn care/snow removal.

Real Estate Investment Analyzer

Real Estate Investment Analysis

Property Details

Monthly Income & Expenses

Market Assumptions

Monthly Cash Flow

Cap Rate

Cash-on-Cash ROI

Total ROI (10 Years)

💰 Monthly Cash Flow Breakdown

🔄 BRRRR Strategy Analysis

📈 Investment Performance Over Time

💡 Investment Analysis & Recommendations

Master Real Estate Investment Analysis

Cash Flow Analysis

BRRRR Strategy

Market Analysis

Risk Management

Financing Strategies

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