The Rental Property Investment Calculator is a tool we created to assist real estate investors like yourself with investment decisions. By calculating key metrics (loan amount, monthly payment, total cost, cash flow, and cap rate) you can better determine the viability of a rental property investment.

Rental Property Investment Calculator Form Fields:

1. Property Value:The total market value of the property.
2. Down Payment:The initial payment made by the investor.
3. Interest Rate:The annual interest rate on the mortgage.
4. Loan Term (Years):The duration of the mortgage loan in years.
5. Closing Costs:Additional costs associated with the property purchase.

Results:

1. Loan Amount:The total amount of the mortgage loan.
2. Monthly Payment:The monthly mortgage payment.
3. Total Cost:The sum of the down payment and closing costs.
4. Cash Flow:The net income generated each month after deducting the mortgage payment.
5. Cap Rate:The capitalization rate, representing the return on investment as a percentage of the total cost.

Rental Property Investment Calculator Fields:

Loan Amount

This is the total amount of money borrowed through the mortgage loan. It is calculated as the property value minus the down payment.

Monthly Payment

The monthly mortgage payment is the amount paid to the lender every month. It includes both principal and interest.

Total Cost

The total cost represents the sum of the down payment and closing costs. It provides an overview of the initial investment.

Cash Flow

Cash flow is the net income generated from the rental property each month. It's calculated by subtracting the monthly mortgage payment from the rental income.

Cap Rate

The capitalization rate is a measure of the property's profitability. It's calculated as the annual cash flow divided by the total cost, expressed as a percentage.

Why is the Rental Property Calculator Important?

1. Financial Planning:Helps in planning and budgeting for the investment.
2. Risk Assessment:Evaluates the potential return and associated risks.
3. Decision Making:Guides investors in making informed investment decisions.

For a demonstration of the Rental Property Investment Calculator let's look at the example below:

While looking for your next rental property investment, you come across a property with a market value of $200,000.

You've decided that you'll make a 20% down payment. This will secure a 4% interest rate on a 30-year loan.

You estimate $5,000 for your closing costs. The monthly rent is projected at $1,500. The result of your entries into your Rental Property Investment Calculator shows your monthly cash flow will be $736.14 with a Cap Rate of 17.65%.

As you see, the Rental Property Investment Calculator provides a valuable insight on what you can expect if you purchased a you're looking at.

MORE COMING SOON!!