Analyze Your Investment Returns
Return on Investment (ROI) measures how much profit you make relative to your investment. For rental properties, this includes cash flow, appreciation, tax benefits, and mortgage pay-down. This calculator helps you understand multiple metrics that define investment success.
Annual cash flow ÷ Total cash invested
Net operating income ÷ Purchase price
Rent - (Expenses + Mortgage)
Cash flow + Appreciation + Principal pay-down
This measures the annual pre-tax cash flow relative to your total cash invested (down payment + closing costs). A healthy cash-on-cash return for rental properties is typically 8-12%.
Calculated as Net Operating Income divided by purchase price. Cap rate ignores financing and shows the property's natural return. San Diego County cap rates typically range from 3-6%.
The money left over each month after paying all expenses and the mortgage. Positive cash flow is ideal, though some investors accept minimal or negative cash flow in high-appreciation markets.
Combines cash flow, appreciation, mortgage principal pay-down, and tax benefits. This provides the complete picture of your investment's performance, often reaching 15-25% annually in strong markets.
Professional property management can increase your ROI by reducing vacancies, minimizing expenses, and maximizing rent collection.
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