Rental Property Calculator
Thinking about a rental in Durango or anywhere in Colorado? Check cash flow, cap rate, cash-on-cash return and DSCR before you make an offer.
Will this rental pay for itself?
Run the numbers on an investment property: monthly cash flow, cap rate, cash-on-cash return and the DSCR lenders look at.
Doesn’t include income taxes, depreciation or the home’s value changing. These are estimates from the numbers you enter, not a loan offer or a rate quote. Your actual rate, payment and costs depend on your credit, the loan program and the property.
Reading Your Rental Numbers
- Cash flow: rent left over each month after the payment, vacancy, management and repairs.
- Cap rate: yearly income after expenses, before the mortgage, divided by the price. It helps compare properties.
- Cash-on-cash return: yearly cash flow divided by the cash you put in.
- DSCR: rent divided by the full payment with taxes, insurance and HOA dues. DSCR loans use it to qualify you.
Financing a rental
Investment property loans usually need a larger down payment than a home you live in. You can qualify with your personal income on a conventional loan, or with the property’s rent on a DSCR loan. See investment property loans.
Rental Property Questions
What is a DSCR loan?
A DSCR loan qualifies you based on the property’s rent compared with its payment, instead of your personal income and tax returns. It’s popular with self-employed investors and people who own several rentals.
Can rent help me qualify on a conventional loan?
Often, yes, using a lease or an appraiser’s rent estimate, usually counted at a reduced amount to allow for vacancy and upkeep.
What about short-term rentals?
Some lenders and programs can use short-term rental income, and HOA and local rules matter too. Ask Peter before you make an offer.
Are these returns guaranteed?
No. They’re estimates from the numbers you enter. Rents, vacancy and repairs change, so try a cautious version of your numbers too.