[Calc Review] Help me analyze this deal

2 Replies

This calculator is terrible. If I used it, I would never buy a property. The mortgage, or debt service, is not an expense. An expense is property taxes. Why? Because you can't avoid it. A mortgage is optional and it ends at some point. Repairs are expenses. Based on this crappy calculator, you should probably buy it because the actual income and expenses are better than this predicts. Income minus expenses is NOI. NOI divided by you down payment is your cash on cash return. Do this on a note pad with a calculator. If you like the answer, buy it. If not, renegotiate or pass.

Your expenses for maintenance and capx seem low at 5% and 3% respectively. Unless this is only 5 years old or newer I would run at least 5% capx if not 8% for both. Otherwise it seems solid if rent is accurate. Depending on where you are in investing, look at a 20 year amortization also to pay it down faster, or if needing cashflow mainly, keep it at 30.

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