Investment Property Calculator
Analyze rental property investments with comprehensive ROI metrics. Calculate cap rate, cash-on-cash return, and cash flow.
Select a neighborhood preset or enter custom values
Property Analysis
Enter property details to calculate returns
Purchase Details
Rental Income
Operating Expenses
Loan Details
Investment properties: +0.5-1% vs primary
Growth Assumptions (for projections)
Cap Rate
7.6%
Cash-on-Cash
5.3%
Annual: $2,660
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Investment Projections
Based on 3% annual appreciation and 2% rent growth
5-Year Outlook
Projected returns
10-Year Outlook
Projected returns
Understanding Key Metrics
Cap Rate
Capitalization rate measures return based on property value alone, ignoring financing. It's calculated as Net Operating Income ÷ Purchase Price.
Fort Wayne Benchmarks:
- • High cash flow areas: 8-11%
- • Balanced neighborhoods: 7-9%
- • Appreciation plays: 5-7%
Cash-on-Cash Return
Measures annual cash flow relative to your actual cash invested (down payment + closing costs + rehab). This shows how hard your cash is working.
Target Returns:
- • Excellent: 12%+
- • Good: 8-12%
- • Acceptable: 6-8%
Monthly Cash Flow
The money left over each month after all expenses and mortgage payments. Positive cash flow provides income and a buffer for unexpected costs.
Cash Flow Targets:
- • Minimum: $100/month per unit
- • Good: $200-300/month
- • Excellent: $400+/month
Gross Rent Multiplier
A quick comparison tool: Purchase Price ÷ Annual Rent. Lower GRM means you're paying less per dollar of rent income.
GRM Guidelines:
- • Under 10: Excellent value
- • 10-15: Good value
- • Over 15: Premium pricing
DSCR (Debt Service Coverage)
Measures ability to cover debt payments. NOI ÷ Annual Debt Service. Lenders typically require 1.20-1.25 minimum for investment loans.
DSCR Ratings:
- • 1.25+: Healthy buffer
- • 1.0-1.25: Tight margin
- • Under 1.0: Negative cash flow
The 1% Rule
Quick screening: Monthly rent should be ≥1% of purchase price. A $200K property should rent for $2,000+/month. Useful for initial filtering.
Rule Application:
- • 1%+: Likely good cash flow
- • 0.8-1%: May work with low expenses
- • Under 0.8%: Needs careful analysis
Learn More About Fort Wayne Investing
Explore our comprehensive guide to investment properties in Fort Wayne, including the best neighborhoods, property types, and investment strategies.
Read Investment GuideInvestment Property FAQ
Disclaimer: This calculator provides estimates for educational purposes only. Actual investment returns depend on many factors including market conditions, property condition, tenant quality, and local regulations. Projections are based on assumed growth rates which are not guaranteed. Always conduct thorough due diligence and consult with real estate and financial professionals before making investment decisions.
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