A good rental isn’t about the listing photos — it’s about whether the numbers hold up.
Cap rate
Net operating income — rent minus operating expenses, before the mortgage — divided by purchase price. It lets you compare properties on a level field, independent of financing.
Cash flow
What’s left each month after the mortgage and every expense. Positive cash flow means the property pays you while it appreciates; negative means you’re feeding it.
Cash-on-cash return
Annual cash flow divided by the actual cash you invested — down payment plus closing costs. It answers “what is my money earning?” more honestly than cap rate alone.
Run it before you offer
Vacancy, management, maintenance and condo fees all matter. Leaving them out is a common mistake.
Pressure-test a property in our Cap Rate and Rental Property calculators.
Open the cap rate calculator →