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Buying to rent

Rental income check

Rent, every cost and the cash flow that is left, with cap rate and cash-on-cash return, so you can check a rental before you make an offer.

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Live tool

Try it now

Change any number and everything updates. When it looks right, send it to Morgan.

The purchase

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Income

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$

Costs

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%
$
$
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Monthly cash flow—
Per year—
Cap rate—
Cash-on-cash—
Net operating income / yr—

    An estimate for planning, not an appraisal, a loan offer, or legal, tax or financial advice.

    Behind the numbers

    How it works

    01

    Income

    Rent + other income, minus vacancy (a % of rent).

    02

    Operating costs

    Management, repairs and the big-ticket reserve as % of rent, plus tax and insurance ÷ 12, HOA and utilities.

    03

    Cash flow

    Net operating income (income − operating costs) minus the mortgage payment (principal and interest, 30 years).

    04

    Returns

    Cap rate = yearly net operating income ÷ price. Cash-on-cash = yearly cash flow ÷ (down payment + closing and make-ready costs).

    Adjust it

    What each input means

    RentFrom comparable rentals nearby. Morgan can pull them.
    Percent costsExamples only. Older homes and some areas run higher.
    RateRates for investment property are often higher than for a home you live in. Use a lender quote.

    When to use it

    Made for

    • Before an offer on a rental
    • Keeping your current home as a rental
    • Comparing two possible rentals
    Part of a guided path

    Buying

    Choose the part of town that fits your life first: golf, trails, dining, space, views. Then be first to the right homes, sent to you personally by Morgan.

    1. Find your area
    2. Backyard sun (optional)
    3. Your search
    4. Your plan
    About this path

    Questions

    Good to know

    Does it include taxes on rental income or depreciation?+

    No. Ask a tax professional how rental income, deductions and depreciation work for you.

    What about tenant screening?+

    Use the same written criteria for every applicant and follow fair housing law, plus any state and local rules.

    Keep planning

    Related tools

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    Want Morgan’s eyes on it?

    Send your numbers and she will review them personally, with real figures for your area.

    Call 520-555-0100
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