Premier Property Management Services

CALL FOR A QUOTE 214.310.1630
  • Home
  • About us
  • Services
    • Real Estate Investment Services
    • Full-Service Property Management
    • Property Care
      • 24-Hour Maintenance
      • HOA Rules & Regulations
      • Maintenance Coordination
      • Property Inspections
    • Reporting & Statements
      • Cash-Flow Reporting
      • Disbursement of Funds
      • Move-In & Out Reporting
      • Monthly Owner Statements
    • Tenant Care
      • Evictions
      • Rental Agreement Enforcement
      • Rent Collection
      • Tenant Placement
    • Property Management Fees
  • Rentals
  • Service Areas
    • Collin County
      • Allen, TX
      • Celina, TX
      • Frisco, TX
      • McKinney, TX
      • Plano, TX
    • Dallas County
      • Carrollton, TX
      • Coppell, TX
      • Dallas, TX
      • Garland, TX
      • Grand Prairie, TX
      • Irving, TX
      • Mesquite, TX
      • Richardson, TX
    • Denton County
      • Corinth, TX
      • Denton, TX
      • Flower Mound, TX
      • Frisco, TX
      • Highland Village, TX
      • Lake Dallas, TX
      • Lewisville, TX
      • Little Elm, TX
      • Plano, TX
      • The Colony, TX
      • Trophy Club, TX
    • Johnson County
      • Burleson, TX
      • Cleburne, TX
    • Tarrant County
      • Arlington, TX
      • Fort Worth, TX
      • Grand Prairie, TX
      • Grapevine, TX
      • Keller, TX
      • Mansfield, TX
      • Saginaw, TX
      • Southlake, TX
  • Resources
    • Blog
    • Working With A Property Manager
    • Getting Started in Real Estate Investing
    • Buying An Investment Property
    • Maximizing Cash Flow
    • Rental Property Accounting
    • Landlording
    • Finding the Right Tenant
    • Evicting A Tenant
    • Texas Real Estate Investor’s Guide
  • Contact us
You are here: Home / Blog / How to Determine If Your Investment Property Will Produce Cash Flow [FREE Rental Property Calculator]

How to Determine If Your Investment Property Will Produce Cash Flow [FREE Rental Property Calculator]

October 18, 2016 by Jason

rental property cash flow calculator

Will your existing and prospective properties produce the income you’re looking for?

The primary tool you need to make your decision is a rental property calculator. As you calculate how much your rental property will produce, consider these expenses.

Monthly Rent Potential

How much can you charge based on the market? Remember, it’s the market (not your monthly expenses!) that drives your rental rate.

Improvement Costs

What’s it going to take to get your house rent-ready? For a house that’s less than 10 years old, it’ll cost an average of 1% of the property value. For older homes, add in the approximate cost of necessary repairs and updates as well.

Financing Data

Find out what interest rate you’ll get on a loan. Then determine the term of the loan (10, 15, 25, or 30 years). Once you secure these figures, you can better calculate your monthly mortgage.

Down Payment Amount

How much do you want to put down on the loan? If it’s less than 20% of the selling price, add on the PMI (Private Mortgage Insurance) fee your bank adds to your monthly mortgage.

After you figure out these basic monthly expenses, add the costs associated with:

  • Insurance cost ratio
  • Property tax rate
  • Maintenance reserve rate
  • Depreciable percentage of investment cost
  • Incremental personal tax rate
  • Year one cash and profit calculation
  • Total operating expenses
  • Vacancy cost
  • Total management expenses

FREE Rental Property Calculator

If you don’t know all these numbers (or you just don’t want to deal with them), don’t worry! A good property manager takes you from the first stages of finding an investment property to navigating the figures that determine if that investment is worthwhile. At LEAP DFW, we’ll send you a rental property cash flow spreadsheet so you can see exactly how it totals up.

Plus, we’ve also provided an absolutely free calculator to help you run the numbers. This is the same calculator we use with every single property we manage. Other sites charge monthly fees for a tool like this, but just sign up here for access to the rental property calculator today.

Filed Under: Blog, Resources for Investors Tagged With: Cash flow, Finding investment properties, Investment opportunities, LeapDFW

WHAT WILL MY PROPERTY RENT FOR?

  • This field is for validation purposes and should be left unchanged.
LEAP Property Management logo
  • Consumer Notice
  • Information about broker services

Company

  • About LEAP DFW
  • Careers
  • Property Management Blog
  • Agent Referral Program

Services

  • Real Estate Investment Services
  • Full-Service Property Management
  • Property Care
  • Reporting and Statements
  • Tenant Care
  • Property Management Fees

Contact Us

215 Betchan Dr.
Lake Dallas,TX 75065
(P) 940-566-6413

After Hours Emergency:
214-310-1630

Copyright © 2021 LEAP DFW Property Management. All Rights Reserved.
Close

WHAT WILL MY PROPERTY RENT FOR?

  • This field is for validation purposes and should be left unchanged.
Menu
  • Home
  • About us
  • Services
    ▼
    • Real Estate Investment Services
    • Full-Service Property Management
    • Property Care
    • Reporting & Statements
    • Tenant Care
    • Property Management Fees
  • Rentals
  • Service Areas
    ▼
    • Collin County
    • Dallas County
    • Denton County
    • Johnson County
    • Tarrant County
  • Resources
    ▼
    • Blog
    • Working With A Property Manager
    • Getting Started in Real Estate Investing
    • Buying An Investment Property
    • Maximizing Cash Flow
    • Rental Property Accounting
    • Landlording
    • Finding the Right Tenant
    • Evicting A Tenant
    • Texas Real Estate Investor’s Guide
  • Contact us