BiggerPockets Rental Property Calculator

3 Replies

I recently upgraded to use the Bigger Pockets Rental Property Calculator, Is there someone out there willing to look at what we have come up with. We’re Looking at a property asking 269k results; a negative cash flow of 1,218.31 with a purchase cap rat at .90%, so then did at 160k, Results’ neg cash flow of 342.83 at 3.76% cap rate WHAT!

I’m sure I’m doing something wrong, maybe.

One more question; why would the vacancy rate in dollars be put in the expense column, I was under the impression Rent not received is money not earned not an expense.

Thanks

Mike

Can you post the details of the property? Vacancy is not truly an expense, but needs to be calculated in somewhere.

Vacancy needs accounted for when you calculate the yearly income. You make assumptions that you will rent the property at say $1000/mo for next 12 mo. When you get a vacancy that's 8%, it means 1 month less income in your yearly NOI calculations. So yes, you need to account for it. Also the side effect is a big vacancy rate will add more doubt of your ability to keep the property rented.

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