Residentail Income Property Analyzer

 

This calculator helps property investors quickly calculate the potential viability of residential income property investments. Enter your property information and quickly calculate factors like:

  • Capitalization Ratio (CAP)
  • Debt Service Coverage Ratio (DSCR)
  • Net Operating Income (NOI)
  • Net Income Multiplier (NIM)
  • Gross Rent Multiplier (GRM)
  • Cash on Cash (COC)
  • Expense Ratio (ER)
  • and more!

Property Info

Amount

Purchase Price:
Enter the purchase price of the property.
Down Payment: %
Enter the amount of the down payment, or enter a percentage in field in the left hand column and click the [Calc Down Payment] button.
Loan Term (Years):
Enter the term of the loan in number of years.
Interest Rate (%):
Enter the annual interest rate of the loan.
Select Payment Type (P&I or Interest-Only):
If you would like the calculator to calculate the mortgage payment amount for you, select the payment type, be sure all of the loan terms are entered, and click the [Calc Payment] button.
P & I Payment ($):
If you know the monthly mortgage payment, enter it in the space provided. Otherwise, if you want the calculator to compute the payment for you, be sure the loan terms are entered in the appropriate fields and click the [Calc Payment] button.
Closing Costs ($):
Enter the closing costs of the loan.
Gross Scheduled Income (GSI):
Enter the Gross Scheduled Income (GSI). GSI is the maximum possible annual income generated by rent collections.
Vacancy Rate (%):
Enter the expected vacancy rate as a whole number (for 10%, enter 10).
Number of Units:
Enter the number of units in the building.
Other Income (Annual laundry, late fees, etc.):
Enter additional income generated by late fees, laundry fees, storage fees, etc.
Capitalization Rate Required (Optional):
If you want the calculator to compute the Property Value based on your required capitalization rate, enter the rate in this field. Otherwise you can leave it blank.

Annual Operating Expenses

Accounting ($):
Enter the annual cost of accounting.
Admin/Legal/Bank Charges ($):
Enter the annual cost of administration and bank charges.
Advertising ($):
Enter the annual cost advertising.
Electricity ($):
Enter the annual electricity expense.
Elevator ($):
Enter the annual elevator expense.
Gas ($):
Enter the annual cost of natural gas and propane.
Landscaping ($):
Enter the annual cost of landscaping.
Legal ($):
Enter the annual cost of legal fees.
Maintenance & Repair ($):
Enter the annual cost of maintenance & repairs.
Payroll Taxes ($):
Enter the annual cost of payroll taxes.
Permits & Licenses ($):
Enter the annual cost of permits & licenses.
Pest Control ($):
Enter the annual cost of pest control.
Pool ($):
Enter the annual pool expenses.
Property Insurance ($): %
Enter the annual property insurance. If you would like the calculator to compute it for you, enter a percentage in % field and click the [Calc Insurance] button.
Property Management ($): %
Enter the annual cost of property management If you would like the calculator to compute it for you, enter a percentage in % field and click the [Calc Mgmt] button.
Real Estate Taxes ($): %
Enter annual real estate taxes for the propery. If you would like the calculator to compute it for you, enter a percentage in % field and click the [Calc Taxes] button
Security ($):
Enter the annual security expenses.
Supplies ($):
Enter the annual cost of supplies.
Telephone ($):
Enter the annual telephone expenses.
Tenant buyout ($):
Enter the annual cost of tenant buyouts.
Trash ($):
Enter the annual trash expenses.
Water ($):
Enter the annual cost of water & sewer.
Other ($):
Enter the other annual expenses not listed above.
Other ($):
Enter the other annual expenses not listed above.

Income Statement & Cash Flow

Gross Scheduled Income (GSI):
Gross Scheduled Income [GSI]. The maximum possible annual income generated by rent collections.
Less Vacancy:
Vacancy. This equal to the Gross Operating income times the vacancy rate.
Total Actual Annual Income:
. Total Actual Annual Income. This is the actual annual income collected after deducting vacancy amount.
Other Income:
Other Income. This is the additional income generated by late fees, laundry fees, storage fees etc
Gross Operating Income (GOI):
Gross Operating Income [GOI]. GOI is calculating by subtracting the vacancy amount from the GSI and then adding other income.
Total Operating Expenses:
Total Operating Expenses. This is the sum of all annual operating expenses.
Net Operating Income (NOI):
Net Operating Income [NOI]. Represents the profit amount the property generates after deducting all expenses, excluding the debt service (mortgage payments).
Annual Debt Service (Mortgage Payments):
Annual Debt Service. The total annual mortgage payment that includes the principal and interest, or interest-only in the case of an interest-only mortgage.
Before Tax Cash Flows:
Before Tax Cash Flows [BTCF]. The positive cash flow the property generates on an annual basis.

Key Operating Ratios

Capitalization Rate (CAP):
Capitalization Rate [CAP]. Net operating income (NOI) divided by the purchase price of the property, expressed as a percentage. The higher the better.
Cash on Cash (COC):
Cash on Cash [COC]. The return on investment. It is equal to the Before Tax Cash Flow (BTCF) divided by the sum of all out-of-pocket aquisition costs (down payment, closings costs, etc.).
Gross Rent Multiplier (GRM):
Gross Rent Multiplier [GRM]. Purchase price divided by the Gross Scheduled Income (GSI). The lower the number the better.
Net Income Multiplier (NIM):
Net Income Multiplier [NIM]. The purchase price divided by the Net Operating Income (NOI). The lower the NIM the better.
Debt Coverage Ratio (DCR):
Debt Coverage Ratio [DCR]. The Net Operating Income (NOI) divided by the Annual Debt Service. The higher the DCR the better. A DCR below 1.0 means the property is generating a negative cash flow. A DCR above 1.2 is considered to be a good cash flowing property.
Expense Ratio (ER) per Unit :
Expense Ratio (ER) per Unit. Total Operating Expense divided by Gross Operating Income (GOI), expressed as a percentage. A percentage below 35 is considered good.
Price Per Unit:
Price Per Unit. Purchase price divided by the number of units in the building.
Property Value Based on Required CAP Rate (if entered):
Property Value. This is the value of the property based on your Required Capitalization Rate, if you entered one.

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