For rental investors
Rental deal analyzer
Test a rental purchase with your own numbers: the monthly payment, the debt service coverage ratio, the cash flow after your own allowances, and the cash-on-cash return on your down payment. It runs in your browser and nothing you type is sent to us.
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- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
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Fidelity Residential · NMLS #103098 · Equal Housing Lender
Analyzer
Run the numbers on a rental
Enter the price, your down payment, the rent and the property’s costs, then the interest rate and loan term from your own quote. Every figure below is worked out from what you enter.
Everything here runs in your browser. Nothing you type is sent to us, saved, or added to the page address. See our Privacy Policy.
The purchase
The amount you plan to put down. The loan amount is the price minus this.
Your loan figures
Type the rate from your own quote. This page does not suggest one.
From your own quote, in whole years.
Rent and costs
Total for all units.
Include flood insurance if the property needs it.
Leave blank if none.
Your allowances (optional)
Your own estimate of rent lost between tenants. Leave blank for none.
Your own estimate for repairs and upkeep. Leave blank for none.
Your illustration
An illustration from your own numbers: not a quote, not an offer of credit and not a loan decision.
| Loan amount (price minus down payment) | – |
|---|---|
| Principal and interest | – |
| Property taxes | – |
| Insurance | – |
| HOA dues | – |
| Full monthly payment (PITIA) | – |
| Rent | – |
|---|---|
| Full monthly payment | – |
| Cash flow before allowances | – |
| Your vacancy allowance | – |
| Your repairs allowance | – |
| Cash flow after allowances | – |
| Cash flow after allowances, per year | – |
|---|
This analyzer gives illustrations for information only, worked out from the numbers you enter. It is not a loan application, a rate quote, an offer of credit, a loan decision or a commitment to lend. The interest rate and loan term are the ones you enter; we do not state or suggest them on this page. A lender sets the rent it counts from the lease and the appraisal, and each program has its own minimum ratio, loan-to-value, credit and reserve rules. Your actual payment, including taxes and insurance, may differ. DSCR loans are for investment property only and are not available for a home you live in.
How it works
How each figure is worked out
Loan amount: the purchase price minus your down payment.
Principal and interest: the level monthly payment that pays off the loan amount over the term you entered, at the rate you entered.
Full monthly payment (PITIA): principal and interest, plus a twelfth of the yearly property taxes and insurance, plus the monthly HOA dues.
Debt service coverage ratio: the monthly rent divided by the full monthly payment. It is the comparison a DSCR loan is based on: above one, the rent covers the payment with room to spare; at one, the rent just covers it; below one, the rent falls short and fewer programs fit.
Cash flow: the rent minus the full monthly payment, first before and then after your vacancy and repairs allowances, each a share of the rent that you choose.
Cash-on-cash return: a year of cash flow after your allowances, divided by your down payment.
A lender sets the rent it counts from the lease and the appraiser’s market rent, generally the lower of the two, and still checks your credit, your reserves and the property. Talk to a loan officer about this property
Questions
Common questions about the analyzer
Why doesn’t the analyzer fill in an interest rate?
Rates change, and the rate on a rental loan depends on the property, the loan and you. So the analyzer uses only the rate and term you type in from your own quote, and shows nothing until you do. For a quote on a property you have in mind, talk to a loan officer.
What does it mean when the ratio is below one?
Below one means the rent does not cover the full monthly payment: the property has negative cash flow, and you pay the shortfall each month from other money. Some programs consider a property with a ratio below one; others need the rent to cover the payment in full, at one or above, so fewer programs fit. More about DSCR loans.
Is cash flow the same as the debt service coverage ratio?
No. The ratio compares the rent with the full monthly payment, the way a DSCR lender looks at it. The cash flow after allowances also takes off the vacancy and repairs allowances you chose, so it is closer to what the property might leave you each month. A rental can have a ratio above one and still lose money once those allowances are counted.
What does the cash-on-cash return leave out?
It divides a year of cash flow after your allowances by your down payment only. Closing costs, reserves, work at purchase, the loan balance going down, any change in the property’s value, and income taxes are not counted.
Is anything I type saved or sent?
No. The analyzer runs in your browser. Nothing you type is sent to us, saved, or added to the page address, and closing the page clears it. To talk a property through, call 732-686-9999 or start a quote.
Have a property in mind?
Get a quote, apply online, or talk the deal through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, property, rent and underwriting review and are subject to change without notice. Business purpose investor loans are for investment property only.
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