Rental Property Calculators
Three quick frameworks for running the numbers on your rental property. These are education – for a custom analysis on your specific property, our team runs it free.
1. Monthly Cash Flow
Cash flow is what lands in your bank account each month after everything is paid. It’s the single most important number for evaluating a rental property.
Worked example
A $300,000 single-family rental at $2,200/mo rent, with a $1,350 mortgage payment, $250 property tax + insurance escrowed, $50 HOA, 10% management ($220), 8% maintenance reserve ($176), and 5% vacancy reserve ($110):
$2,200 − $1,350 − $250 − $50 − $220 − $176 − $110 = $44/month positive cash flow.
Thin, but this is typical for newer-market single-families. Long-term returns come primarily from principal paydown and appreciation, not monthly cash flow.
2. Cap Rate & Cash-on-Cash Return
Cap rate measures a property’s income potential independent of financing. Cash-on-cash tells you the return on the cash you actually invested.
Worked example
Same $300,000 property. Net operating income (rent minus operating expenses, NOT including mortgage) = $2,200 − $250 − $50 − $220 − $176 − $110 = $1,394/mo = $16,728/yr.
Cap rate = $16,728 ÷ $300,000 = 5.6%
For cash-on-cash, assume $60K down + $6K closing = $66K cash in. Annual cash flow = $44 × 12 = $528.
Cash-on-cash = $528 ÷ $66,000 = 0.8%
Low cash-on-cash, but after year 1 you also have ~$4K in principal paydown and (typically) $9K in appreciation – so real total return is closer to 20%/yr.
3. Hold vs. Sell Decision
If you’re deciding whether to rent your old home or sell it, the right comparison is: total return if held as rental vs. sale proceeds invested elsewhere.
Rule of thumb
If the property will cash flow at all and you expect 3%+ annual appreciation, holding typically beats selling on a 5-year horizon. If it’s negative cash flow with no appreciation upside, sell.
A huge factor that tilts the math toward holding: the tax-deferred capital gains exclusion if it was your primary residence (up to $250K single / $500K married, if you’ve lived there 2 of the last 5 years).
Want us to run your numbers?
Reach out for a free market analysis. We’ll pull comps, estimate rent, project cash flow + cap rate, and give you a real answer on whether your property is a strong rental candidate.
Request a free market analysis
Questions? Email info@LuxFLRentals.com.