Landlord Rental Yield & Cash-on-Cash Calculator
Calculate gross rental yield, net operating income (NOI), cap rate, monthly positive cash flow, and cash-on-cash return for investment properties.
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Frequently Asked Questions
What is the difference between Gross Rental Yield and Net Rental Yield?
Gross Rental Yield is simply total annual rent divided by property purchase price. Net Rental Yield subtracts property taxes, homeowners insurance, maintenance reserves, management fees, and vacancy losses from gross rent before dividing by purchase price.
What is Cash-on-Cash (CoC) return?
Cash-on-Cash return measures the annual pre-tax cash flow received divided by the actual out-of-pocket cash invested (down payment, closing costs, upfront renovation). Real estate investors generally target a 7% to 12% CoC return.
What is the 50% Rule in real estate investing?
The 50% rule is an investor guideline that assumes approximately 50% of gross rental income will be consumed by operating expenses (taxes, insurance, repairs, vacancies, property management), leaving the remaining 50% for mortgage debt service and profit.
What is a good Cap Rate for residential rental property?
Cap rates between 5% and 8% are typical for stabilized residential real estate in high-demand US metro markets. Higher cap rates (8% to 12%) occur in riskier tertiary markets with higher vacancy or lower appreciation potential.