Question 1

What is a good cash flow per door on a rental?

Accepted Answer

Most long-term rental investors target $150–$300 per door per month in true cash flow, after booking vacancy, maintenance, management, and CapEx reserves. Markets with stronger appreciation often cash flow less; cash-flow-first markets hit higher numbers but with less long-term upside.

Question 2

What is the 1% rule in real estate?

Accepted Answer

The 1% rule is a quick filter: monthly rent should be at least 1% of the purchase price. A $200k property should rent for $2,000+. It is a screening heuristic, not an underwriting tool, always follow up with a full cash-flow analysis like this calculator.

Question 3

What counts as operating expenses?

Accepted Answer

Property taxes, insurance, HOA, property management, routine maintenance, and a CapEx reserve for future roof/HVAC/systems replacement. It does NOT include your mortgage payment, that comes out of NOI to calculate cash flow.

Question 4

How accurate is the 50% rule?

Accepted Answer

The 50% rule assumes operating expenses will eat 50% of gross rent. It is a quick sanity check, not underwriting. High-class properties with strong tenants often run 35–45%; C-class properties with higher turnover can exceed 55%. Always model real line-item expenses for any property you actually pursue.

Question 5

Should I include my mortgage in the cap rate calculation?

Accepted Answer

No. Cap rate is a financing-agnostic measure, it tells you what the property would yield if owned free and clear. Cash-on-cash ROI includes your mortgage and down payment. Use cap rate for comparing across properties and markets; use cash-on-cash for comparing to other uses of your capital.

Question 6

Does this calculator model appreciation and tax benefits?

Accepted Answer

No, it is a single-year cash flow snapshot. Appreciation, principal paydown, and tax benefits (depreciation, 1031) are real returns but are modeled in the full Re:InvestorHub app, not this free tool.

Free Rental Property Calculator: Cash Flow, ROI, and Cap Rate