Foundations9 min read
What is a good cap rate for rental property?
A practical framework for judging a rental property cap rate, including property type, market, condition, risk, and the traps in a pro forma NOI.
Updated Oct 26, 2026Read guide
Investor guides
Rental property guides that show the math.
Understand the numbers before you use them. These guides explain the conventions, the trade-offs, and the questions that a headline return can hide.
17 guides · Updated Oct 28, 2026
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What is a good cap rate for rental property?
A practical framework for judging a rental property cap rate, including property type, market, condition, risk, and the traps in a pro forma NOI.
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Build the analysis from the ground up.
Foundations11 min read
Cap rate formula: NOI, basis, and the math behind the number
Learn the cap rate formula step by step, including NOI, effective gross income, operating expenses, acquisition basis, reverse cap rate, and required rent.
Updated Oct 26, 2026Read guide
Metrics10 min read
Cap rate vs. cash-on-cash return: which number should you use?
Compare cap rate and cash-on-cash return with a worked financing example, and learn when each metric helps and what both of them leave out.
Updated Oct 26, 2026Read guide
Cash flow12 min read
Rental property cash flow formula: from NOI to cash-on-cash
Calculate rental property cash flow step by step. Build NOI, subtract debt service, solve for cash-on-cash return and DSCR, and avoid the common double-counting mistakes.
Updated Oct 27, 2026Read guide
Cash flow11 min read
What is a good cash flow rental?
Learn how to judge rental cash flow using monthly cash flow, cash-on-cash return, DSCR, reserves, and stress tests. See why a positive number is not automatically a good deal.
Updated Oct 27, 2026Read guide
Metrics12 min read
Cash-on-cash return formula: how to calculate CoC
Learn the cash-on-cash return formula, what belongs in cash invested, how closing costs and rehab change the result, and how leverage affects the number.
Updated Oct 27, 2026Read guide
Metrics11 min read
What is a good cash-on-cash return?
A practical framework for judging cash-on-cash return, including leverage, risk, cash invested, market context, and why a high CoC can be a warning sign.
Updated Oct 27, 2026Read guide
Strategy13 min read
The BRRRR method, explained without the hype
A practical guide to the BRRRR method: how the five phases work, how cash is tied up and returned, what the 75% rule misses, and how to underwrite the refinance.
Updated Oct 28, 2026Read guide
Metrics11 min read
Cash left in the deal: the BRRRR formula
Calculate cash invested, cash back at the refinance, and cash left in a BRRRR. Includes the exact formula, a worked example, and reverse solves for ARV and purchase price.
Updated Oct 28, 2026Read guide
Financing12 min read
Hard money loan costs: points, interest, and fees
How to price a hard money loan: loan sizing, initial advance vs. rehab holdback, points, drawn vs. commitment interest, cash to close, total finance charge, annualized cost, and exit ROI.
Updated Oct 28, 2026Read guide
Financing11 min read
DSCR formula: how lenders calculate coverage
The DSCR formula explained: qualifying rent, PITIA, the lender coverage ratio, the max-loan solve, rent needed, and the difference between lender and investor DSCR.
Updated Oct 28, 2026Read guide
Metrics10 min read
What is a good DSCR for a rental property?
What counts as a good DSCR: common lender thresholds, how property type and loan size change the target, and the trade-offs between coverage, cash flow, and reserves.
Updated Oct 28, 2026Read guide
Financing12 min read
DSCR loan requirements: what lenders look for
A practical DSCR loan checklist: credit, down payment, reserves, rent support, property type, entity structure, insurance, and the documents a lender may request.
Updated Oct 28, 2026Read guide
Financing9 min read
Seller financing formula: payment, balloon, and amortization
How to calculate a seller-financed note payment, separate the amortization from the balloon term, solve for the balloon balance, and stress-test the refinance.
Updated Oct 28, 2026Read guide
Financing10 min read
Seller financing vs. a bank DSCR loan
Compare a seller-financed note with a bank or DSCR loan on down payment, payment, DSCR, closing speed, tax, and balloon risk, with a worked rental example.
Updated Oct 28, 2026Read guide
Tax11 min read
Seller financing tax: installment sale, recapture, and deferral
How an installment sale works for a seller-financed rental: gross profit ratio, depreciation recapture, interest income, NIIT, state tax, and the present value of deferral.
Updated Oct 28, 2026Read guide
Legal10 min read
Seller financing rules: Reg Z, Dodd-Frank, and the AFR
A practical guide to seller-financing compliance: business-purpose vs. consumer-purpose loans, the Reg Z seller-financer exemptions, ability-to-repay, balloons, and the applicable federal rate.
Updated Oct 28, 2026Read guide
How these guides are written
Guides are written by the Rental Property Math editorial team, grounded in standard income-property conventions, and reviewed against primary references where available. They are educational, not personalized advice.
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