$615,000 rental, fully underwritten
Every figure below is computed by Caprately's analysis engine from this deal's numbers — cash flow, cap rate, DSCR, a 10-year projection, and the verdict. Nothing is hand-picked.
Doesn't meet your rental criteria
- Max workable price
- ~$192,000
- You’re asking
- $615,000
The price is about $423,000 above the most you could pay and still pass.
First to fail: Cash-on-cash return — -13.8% against a minimum of 4.0%.
Where it stands
- Monthly cash flow −$1,908/mo vs min $0/mo
- DSCR 0.38x vs min 1.20x
- Cash-on-cash return -13.8% vs min 4.0%
- Break-even occupancy 160.8% vs max 90.0%
Biggest uncertainty: the rent
- At $2,900/moFAIL
- At $5,554/moFAIL
- Minimum rent required$5,555/mo
Every other input here is a price or a rate you can look up. The rent is usually an estimate, and it is the input the answer moves most on — check it against two real rentals nearby before you act on any of this.
Max workable price is based on your assumptions and screening criteria. It is not an appraisal, and not an estimate of market value. Assumes 25% down at 7% over 30 years, on the expenses saved with this deal.
The mortgage alone is $3,069/mo against $2,900 of rent.
Rent covers 94.5% of the loan payment before a single expense. At this price the property is bought for appreciation or to live in, not for income — which is why the numbers look this severe.
Property
$615,000 purchase · 25% down · 7% / 30yr
Gross monthly rent
$2,900
0.47% of price/mo
Monthly cash flow
-$1,908
Show the formula
effective rent − operating expenses − mortgage payment
$2,755 − $1,594 − $3,069 = -$1,908/mo
NOI (annual)
$13,932
Show the formula
(effective rent − operating expenses) × 12
($2,755 − $1,594) × 12 = $13,932
Cap rate
2.3%
Show the formula
annual NOI ÷ purchase price
$13,932 ÷ $615,000 = 2.3%
Cash-on-cash return
-13.8%
Show the formula
annual cash flow ÷ total cash invested
-$22,892 ÷ $166,050 = -13.8%
DSCR
0.38x
Show the formula
monthly NOI ÷ mortgage payment
$1,161 ÷ $3,069 = 0.38x
Break-even occupancy
160.8%
Show the formula
(operating expenses + mortgage payment) ÷ gross rent
($1,594 + $3,069) ÷ $2,900 = 160.8%
Loan amount
$461,250
Show the formula
purchase price − down payment
$615,000 − $153,750 (25%) = $461,250
Monthly P&I payment
$3,069
Show the formula
amortized loan payment (rate ÷ 12, term × 12)
$461,250 at 7% over 30 yrs = $3,069/mo
Annualized return if you sold in year 10
1.7%a year
Counts the $166,050 you put in up front, 10 years of cash flow, and the $410,982 left after paying off the loan and 7% in selling costs. Unlike cash-on-cash, it accounts for when each dollar arrives — which is what makes it comparable to a return quoted on a stock or a bond.
This is the least certain number on the page. Most of it comes from the sale, and the sale assumes 3.5% appreciation every year for 10 years. Change that one assumption and this figure moves further than any of the ones above.
Show the cash flowsThe cash flows
the rate at which every flow below discounts back to zero
- Now-$166,050
- Year 1-$22,892
- Year 2-$22,283
- Year 3-$21,652
- Year 4-$20,998
- Year 5-$20,320
- Year 6-$19,618
- Year 7-$18,890
- Year 8-$18,137
- Year 9-$17,357
- Year 10$394,434
Year 10 includes the sale. Nothing here is money in your pocket until the property actually sells.
Equity grows from $179,960 in year 1 to $471,709 in year 10, driven by loan paydown and property appreciation.
| Year | Equity |
|---|---|
| 1 | $179,960 |
| 2 | $207,263 |
| 3 | $235,708 |
| 4 | $265,350 |
| 5 | $296,245 |
| 6 | $328,452 |
| 7 | $362,034 |
| 8 | $397,057 |
| 9 | $433,591 |
| 10 | $471,709 |
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