Rental Property Deal Analyzer
Score any investment property deal across 8 key metrics. Get an instant letter grade from A+ to F and see your 5-year projected return.
Operating Expenses (% of rent)
How the Deal Score Works
The Deal Score combines 8 key investor metrics into a single 0-100 rating. A score of 75+ (A- or better) indicates a strong investment opportunity.
Deal Score
24
3 of 8 metrics passing
Monthly Cash Flow
-$6
Total Cash Needed
$98,000
1.00
DSCR
Target: ≥ 1.25
-0.1%
Cash-on-Cash
Target: ≥ 8%
6.3%
Cap Rate
Target: ≥ 6%
$-6
Monthly Cash Flow
Target: ≥ $200
0.80%
1% Rule
Target: ≥ 1%
$-435
50% Rule Cash Flow
Target: > $0
10.4
GRM
Target: ≤ 15
82%
Break-Even Occupancy
Target: ≤ 85%
Cash Flow
-$366
Equity Buildup
$14,129
Appreciation
$55,746
Total Return / ROI
71%
On $98,000 invested (71% return)
How to Analyze a Rental Property Deal
Successful real estate investors don't rely on gut feelings. They use data-driven metrics to evaluate every deal before committing a single dollar. Our Deal Analyzer scores properties across 8 proven benchmarks used by professional investors, giving you a clear letter grade from A+ to F so you can quickly separate winners from losers.
The 8 Key Metrics Explained:
- DSCR (≥ 1.25): The Debt Service Coverage Ratio measures whether rental income covers the mortgage payment (PITIA). This is the #1 metric DSCR lenders use to qualify investment property loans. A ratio of 1.25 means the property generates 25% more income than needed.
- Cash-on-Cash Return (≥ 8%): Your annual cash flow divided by total cash invested. This tells you how hard your invested dollars are working compared to alternatives like stocks or bonds.
- Cap Rate (≥ 6%): Net Operating Income divided by purchase price. Cap rate measures the property's return independent of financing, showing what you'd earn if you bought all cash.
- Monthly Cash Flow (≥ $200): What's left after all expenses including mortgage, taxes, insurance, vacancy, maintenance, and management. Positive cash flow is the foundation of sustainable investing.
- 1% Rule (≥ 1%): Monthly rent should be at least 1% of the purchase price. A $300,000 property should rent for at least $3,000/month. This is a quick screening test to filter deals before deep analysis.
- 50% Rule: Assumes 50% of gross rent goes to operating expenses (excluding mortgage). If cash flow is still positive after this conservative estimate, the deal has a strong safety margin.
- GRM (≤ 15): Gross Rent Multiplier = Purchase Price ÷ Annual Rent. Lower is better. A GRM of 12 means 12 years of rent would pay the full purchase price.
- Break-Even Occupancy (≤ 85%): The minimum occupancy rate needed to cover all expenses. Below 85% means the property can withstand vacancy without going negative.
What's Included in the Analysis:
Income Side:
- ✓ Gross monthly rental income
- ✓ Effective rent (after vacancy)
- ✓ Net Operating Income (NOI)
Expense Side:
- ✓ Mortgage (P&I on 30-year loan)
- ✓ Property taxes, insurance, HOA
- ✓ Vacancy, maintenance, management reserves
- ✓ Closing costs
Pro Tip: How to Improve Your Deal Score
If your deal scores below a B, try these levers: (1) Negotiate a lower purchase price to improve cap rate and the 1% rule. (2) Increase the down payment to reduce monthly mortgage and boost DSCR. (3) Research comparable rents to ensure you're not underestimating income. (4) Shop for lower insurance quotes. (5) Consider self-managing to eliminate the 8% management fee. Even small changes can move a C+ deal to a B+.
Important: Beyond the Numbers
While these metrics are essential, also consider factors this calculator can't measure: neighborhood quality, school district ratings, employment trends, planned development, tenant demand, and insurance risk (flood zones, hurricane areas). A property that scores B on paper in a growing market may outperform an A+ deal in a declining area. Always pair data analysis with local market knowledge.
Related Investment Tools:
- DSCR Calculator — Calculate your exact Debt Service Coverage Ratio and see if you qualify for financing.
- BRRRR Calculator — Model the full Buy-Rehab-Rent-Refinance-Repeat cycle for value-add deals.
- Portfolio Builder — Map your path from 1 rental to 10+ and see your passive income timeline.
- Rent vs. Sell Analyzer — Deciding whether to keep or sell a property you already own.
Ready to Finance Your Investment Property?
Found an A or B deal? Get pre-qualified for a DSCR loan — no income documentation required. Close in an LLC with competitive rates. Most investors are approved within days.