
Buying to rent
Rental income check
Rent, every cost and the cash flow that is left, with cap rate and cash-on-cash return, so you can check a rental before you make an offer.
Behind the numbers
How it works
Income
Rent + other income, minus vacancy (a % of rent).
Operating costs
Management, repairs and the big-ticket reserve as % of rent, plus tax and insurance ÷ 12, HOA and utilities.
Cash flow
Net operating income (income − operating costs) minus the mortgage payment (principal and interest, 30 years).
Returns
Cap rate = yearly net operating income ÷ price. Cash-on-cash = yearly cash flow ÷ (down payment + closing and make-ready costs).
Adjust it
What each input means
| Rent | From comparable rentals nearby. Morgan can pull them. |
|---|---|
| Percent costs | Examples only. Older homes and some areas run higher. |
| Rate | Rates for investment property are often higher than for a home you live in. Use a lender quote. |
When to use it
Made for
- Before an offer on a rental
- Keeping your current home as a rental
- Comparing two possible rentals
Buying
Choose the part of town that fits your life first: golf, trails, dining, space, views. Then be first to the right homes, sent to you personally by Morgan.
- Find your area
- Backyard sun (optional)
- Your search
- Your plan
Questions
Good to know
Does it include taxes on rental income or depreciation?+
No. Ask a tax professional how rental income, deductions and depreciation work for you.
What about tenant screening?+
Use the same written criteria for every applicant and follow fair housing law, plus any state and local rules.
Keep planning
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Buying budgetWhat your payment buysFrom a monthly budget to a price range, with rate, taxes, insurance and HOA all counted.Open →Want Morgan’s eyes on it?
Send your numbers and she will review them personally, with real figures for your area.