$735,000 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
- ~$372,000
- You’re asking
- $735,000
The price is about $363,000 above the most you could pay and still pass.
First to fail: DSCR — 0.61x against a minimum of 1.20x.
Where it stands
- Monthly cash flow −$1,434/mo vs min $0/mo
- DSCR 0.61x vs min 1.20x
- Cash-on-cash return -8.7% vs min 4.0%
- Break-even occupancy 131.8% vs max 90.0%
Biggest uncertainty: the rent
- At $3,900/moFAIL
- At $6,182/moFAIL
- Minimum rent required$6,183/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.
It runs $1,434/mo short — you would fund the shortfall out of pocket.
$3,705 of effective rent against $1,472 of operating costs and a $3,667 mortgage. Property tax is the heaviest expense at $490/mo.
Property
$735,000 purchase · 25% down · 7% / 30yr
Gross monthly rent
$3,900
0.53% of price/mo
Monthly cash flow
-$1,434
Show the formula
effective rent − operating expenses − mortgage payment
$3,705 − $1,472 − $3,667 = -$1,434/mo
NOI (annual)
$26,796
Show the formula
(effective rent − operating expenses) × 12
($3,705 − $1,472) × 12 = $26,796
Cap rate
3.6%
Show the formula
annual NOI ÷ purchase price
$26,796 ÷ $735,000 = 3.6%
Cash-on-cash return
-8.7%
Show the formula
annual cash flow ÷ total cash invested
-$17,214 ÷ $198,450 = -8.7%
DSCR
0.61x
Show the formula
monthly NOI ÷ mortgage payment
$2,233 ÷ $3,667 = 0.61x
Break-even occupancy
131.8%
Show the formula
(operating expenses + mortgage payment) ÷ gross rent
($1,472 + $3,667) ÷ $3,900 = 131.8%
Loan amount
$551,250
Show the formula
purchase price − down payment
$735,000 − $183,750 (25%) = $551,250
Monthly P&I payment
$3,667
Show the formula
amortized loan payment (rate ÷ 12, term × 12)
$551,250 at 7% over 30 yrs = $3,667/mo
Annualized return if you sold in year 10
5.2%a year
Counts the $198,450 you put in up front, 10 years of cash flow, and the $491,174 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-$198,450
- Year 1-$17,214
- Year 2-$16,233
- Year 3-$15,220
- Year 4-$14,172
- Year 5-$13,090
- Year 6-$11,971
- Year 7-$10,815
- Year 8-$9,620
- Year 9-$8,385
- Year 10$484,064
Year 10 includes the sale. Nothing here is money in your pocket until the property actually sells.
Equity grows from $215,075 in year 1 to $563,749 in year 10, driven by loan paydown and property appreciation.
| Year | Equity |
|---|---|
| 1 | $215,075 |
| 2 | $247,704 |
| 3 | $281,700 |
| 4 | $317,126 |
| 5 | $354,049 |
| 6 | $392,540 |
| 7 | $432,675 |
| 8 | $474,532 |
| 9 | $518,194 |
| 10 | $563,749 |
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