How to read your rental analysis
A rental deal is not one number — it is a stack of them, and they can disagree. A property can pass the 1% rule and still lose money after a high insurance premium; another can look thin on cap rate but throw off strong cash-on-cash with the right financing. This tool puts the whole stack on one screen so you can see where a deal actually stands.
The metrics, in plain terms
- Monthly cash flow — what lands in your pocket after the mortgage and every operating expense. The headline number.
- Cap rate — annual NOI ÷ price. The unlevered yield; good for comparing properties regardless of financing.
- Cash-on-cash return — annual cash flow ÷ the actual cash you put in. Your levered cash yield in year one.
- DSCR — NOI ÷ debt service. Investor (DSCR) loans often want 1.20–1.25+. It qualifies the property, not you.
- 1% rule & GRM — fast screens to triage a list before you run the full numbers.
Financing a Florida 1-4 unit rental
Residential investment property is financed on the borrower for conventional loans, or on the property itself with a DSCR investor loan that qualifies on the rent covering its own debt. We do not quote or advertise rates — enter your own quote above — but we can match your scenario to lenders whose credit box fits it through Linton Global LenderMatch. Buying or selling a 1-4 unit in Florida? See the residential practice and the buyer broker agreements guide.
Rental Property Analysis — FAQ
What does the rental property analysis calculator show?
In one screen: your monthly and annual cash flow, cap rate, cash-on-cash return, DSCR (debt service coverage ratio), the 1% rule, gross rent multiplier, annual NOI, monthly mortgage payment, and total cash to close. You enter the deal — purchase price, down payment, your quoted rate, rent, taxes, insurance, and operating assumptions — and the analysis updates instantly.
Why do I have to enter my own interest rate?
Linton Global Solutions is a licensed brokerage, not a lender, and federal advertising rules (Reg Z) govern how rates are shown. Rather than advertise a rate, the calculator lets you enter the rate you have been quoted so the analysis reflects your actual deal. For financing on a 1-4 unit investment property, we can match you with lenders through Linton Global LenderMatch.
What is a good DSCR for a rental property?
DSCR is annual NOI divided by annual debt service. Many investor (DSCR) loan programs look for 1.20–1.25 or higher, meaning the property’s income covers its debt with a cushion. Below 1.0 the property does not cover its own mortgage from operations. A DSCR investor loan qualifies on the property’s rent rather than your personal income, which is how investors scale past conventional financed-property limits.
What is the 1% rule?
The 1% rule is a quick screen: monthly rent divided by purchase price. At or above 1% is a traditional signal that a rental may cash flow. It is a screen, not a rule — a property under 1% can still work with the right financing and expenses, and one over 1% can still lose money. Use it to filter, then run the full analysis.
Does this replace real underwriting?
No. It is a fast, honest first pass for analysis only — not a loan offer, appraisal, or tax advice. Verify taxes, insurance (Florida insurance moves fast), HOA, and condo reserves before you are under contract. When you are ready to act on a Florida 1-4 unit deal, we can help you underwrite and finance it.
Disclosure. For analysis only — not a loan offer, appraisal, or tax, legal, or investment advice. Rates are entered by you; Linton Global Solutions is a licensed Florida real estate brokerage (Michael R. Linton, FL Broker #BK703722) and does not advertise interest rates or pay or accept residential referral fees. Verify all figures independently before relying on them.