Run the numbers.
Then ask better questions.
Two simple tools for learning the math. Change the inputs to explore a property; all starting values are hypothetical.
Rental coverage & cash flow
Rent/PITIA is a simple lender-style ratio. Cash flow deducts the other allowances below. This is not a lender approval tool.
PITIA includes principal, interest, taxes, insurance, and association dues. Avoid including those items again in “other.” Percentages use scheduled rent. Reserves are planning allowances, not a tax calculation.
Learn the DSCR calculation →Flip purchase ceiling
Resale value minus repairs, contingency, other project costs, and your target profit.
Other costs should include acquisition, finance, holding, and resale costs. This simplified ceiling treats them as fixed inputs; recalculate costs that depend on price, financing, or time. Negative results indicate that these inputs do not support a positive purchase price.
Learn full deal analysis →Before you rely on a result
- Verify value and rent against relevant market evidence.
- Obtain property-specific repair, financing, and insurance estimates.
- Check that no expense is omitted or counted twice.
- Test a lower-income and higher-cost scenario.
- Keep enough liquidity to manage a delay or repair.