How to work out cash flow and cap rate for a rental property listing
The manual way
Net operating income (NOI) = yearly rent − vacancy − operating costs (taxes, insurance, repairs, management, HOA). Cap rate = NOI ÷ purchase price.
Monthly cash flow = (NOI − yearly mortgage payments) ÷ 12. Cash-on-cash return = yearly cash flow ÷ the cash you put in (down payment + closing costs + repairs).
With DealLens
- Open a listing and open DealLens in the side panel.
- Check the price, taxes, HOA and rent it filled in, and adjust anything that looks off.
- Read the cash flow, cap rate and cash-on-cash return; change any assumption and the numbers update. Pro adds flip and BRRRR analysis.
