Real Estate Investment Calculator
Analyze Deals. Build Wealth.
Analyze Deals. Build Wealth.
Verify rehab budget, then make offer.
Real estate investing is not a game of chance; it is a game of calculated risk and precision mathematics. Whether you are a seasoned investor analyzing a 50-unit multifamily complex, a flipper estimating rehab costs for a distressed property, or a first-time homebuyer looking to "house hack" a duplex, the fundamental equation remains the same: Income - Expenses = Cash Flow.
This comprehensive investment calculator suite is engineered to be more than just a mortgage estimator. It is a full-cycle deal analyzer designed to handle the complexities of BRRRR investing (Buy, Rehab, Rent, Refinance, Repeat), Fix and Flip projects (70% Rule), and Long-Term Rental portfolios. By accounting for variable interest rates, holding costs, vacancy rates, insurance, and capital expenditures (CapEx), we provide the clarity you need to make multi-million dollar decisions with confidence.
The BRRRR method has revolutionized real estate investing by allowing investors to scale their portfolios without running out of capital. It is a velocity-of-money strategy that prioritizes equity capture over initial cash flow. The goal is the "Infinite Return"—where you pull 100% of your invested capital out during the refinance.
Flipping houses is a high-stakes operation that demands speed and budget discipline. The Maximum Allowable Offer (MAO) is the most critical number for a flipper. It determines the ceiling price you can pay for a property while still guaranteeing a profit.
The 70% Rule Formula:
(After Repair Value x 0.70) - Estimated Repair Costs = Max Offer Price
While the 70% rule is a great rule of thumb, modern flipping requires a deeper analysis. You must account for hard money points (often 2-4% of the loan amount), monthly interest carry costs, contractor draw fees, and short-term capital gains taxes. Our calculator breaks down these "soft costs" to show you the true net profit, protecting you from deals that look good on paper but bleed money in reality.
For buy-and-hold investors, Cash Flow is the lifeblood of the business. However, looking at "Rent minus Mortgage" is a recipe for bankruptcy. A professional analysis must include the "Silent Killers" of rental income:
Debt Service Coverage Ratio (DSCR): Lenders use this metric to qualify loans. It is the Net Operating Income (NOI) divided by the annual debt service. A DSCR above 1.25 is typically required for commercial and portfolio loans.
Leverage is the tool that accelerates wealth building, but not all debt is created equal. Understanding your financing options is crucial for strategy execution.
Real estate is one of the most tax-advantaged asset classes in the United States. Through depreciation (phantom expenses), investors can often show a paper loss while generating positive cash flow, significantly reducing their taxable income. Advanced strategies like Cost Segregation can accelerate this depreciation. Furthermore, the 1031 Exchange allows investors to defer capital gains taxes indefinitely by rolling profits into a new, like-kind property.
The 70% rule is a guideline for flippers. It states you should pay no more than 70% of the After Repair Value (ARV) of a property minus the repairs needed. For example, if a home's ARV is $200,000 and it needs $40,000 in repairs, your max offer is ($200k * 0.70) - $40k = $100,000.
ARV is calculated by looking at "comps" (comparable sales). Find 3-5 properties similar to yours (size, age, style) that have sold in the last 6 months within a 1-mile radius AND have been fully renovated. Average their sold prices to estimate your property's potential value after rehab.
No, but it is harder. When rates are high, your refinance loan will have a higher monthly payment, which reduces cash flow. To make BRRRR work today, you must buy deeper discounts (better equity capture) or focus on markets with higher rent-to-price ratios.
A DSCR (Debt Service Coverage Ratio) loan is a mortgage for investment properties that qualifies based on the property's cash flow, not your personal income. If the rent covers the mortgage payment (DSCR > 1.0), lenders will often fund the deal regardless of your job status.
A conservative rule of thumb is to keep 6 months of mortgage payments (PITI) plus estimated expenses in a separate account. This covers you during extended vacancies or major repairs like a roof or HVAC failure.
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