A comprehensive investment property analysis tool. Here's how to get the most out of it.
Step 1: Market Research
Enter a zip code and click "Pull Market Data" to automatically fetch:
- HUD Fair Market Rents (FMR) - Official government rent benchmarks by bedroom count. These are what HUD says is "fair rent" for the area, used by Section 8 and housing programs.
- AI Market Insight - An AI-generated summary of the local rental market, trends, and investment considerations.
You can also skip this and enter all numbers manually.
Veteran Benefits (Important!)
Click "Yes, I'm a veteran" to activate VA loan provisions. This automatically adjusts:
- Down payment drops to 0% - VA loans allow 100% financing with no money down
- Interest rate adjusts to ~6.25% - VA rates are typically 0.5-0.75% lower than conventional
- No PMI required - unlike conventional loans with less than 20% down
- VA Funding Fee - calculated automatically (2.15% first use, 3.3% subsequent). If you have a disability rating of 10% or higher, the fee is completely waived.
- California veterans with 100% disability - property tax exemption is automatically applied ($180,671 of assessed value exempt)
All veteran adjustments flow directly into the mortgage calculations, cash flow projections, and final verdict.
Step 2: Property Details
Fill in the property information:
- Property Type - Duplex, Triplex, Fourplex, or Single-Family
- Purchase Price - What you'd pay for the property
- Down Payment - 25% is typical for investment properties (0% with VA loan)
- Mortgage Rate - Current rates for investment properties run 6.5-7.5%
- Property Tax - National average is ~1.1%. California is typically 0.7-1.2%
- Insurance - Typically $1,500-$3,000/yr for a $300K-$500K property
- Maintenance - Rule of thumb: 1% of home value per year. Older buildings: 1.5-2%
- Closing Costs - Typically 2-5% (appraisal, title, lender fees, escrow)
- Selling Costs - Typically 5-6% (agent commissions, title fees, transfer taxes)
Each field has a helper note below it explaining typical values.
Step 3: Rental Income
Enter the expected monthly rent for each unit. For a triplex where you live in one unit, enter rent for the other two units. The tool accounts for vacancy rate (5% = ~18 days/year vacant).
Step 4: Investment Assumptions
These settings control the long-term projections:
- Hold Period - How many years you plan to own the property (default: 10)
- Alternative Investment Return - What you'd earn if you invested the down payment in the stock market instead (default: 7% = S&P 500 average after tax)
- Property Management Fee - 0% if you manage yourself, 8-10% if you hire a manager
- Your Current Rent - If you're currently renting, enter your monthly rent. The tool compares owning vs. continuing to rent.
Understanding the Results
After clicking "Run Analysis", you'll see:
- Verdict - Whether buying beats renting + investing, and by how much
- Cash-on-Cash Return - Year 1 net income divided by cash invested. Above 8% is strong for an investment property.
- Cap Rate - Net Operating Income divided by purchase price. Above 5% is generally good.
- Total Wealth (Buy) - Your net wealth position after the hold period
- Cash Flow Projection - Year-by-year chart showing income vs. expenses
- Year-by-Year Breakdown - Detailed table with rent, expenses, mortgage balance, equity, and cumulative cash flow for every year
Other Views
Use the tabs at the top to switch between three analysis modes:
- Analyze - Deep dive into a single property (this is the main view)
- Compare - Enter two properties side-by-side to see which builds more wealth over your hold period
- Estate & Legacy - Generational wealth planning. Models what happens when you pass the property to your child, then grandchildren. Includes stepped-up basis (IRC 1014), disability considerations, and timeline projections.
Tips
- Click the sun/moon icon in the top nav to switch between dark and light mode
- All calculations run 100% in your browser. No data is stored on any server.
- The tool automatically saves your theme preference between visits
- Try different scenarios by changing the down payment, hold period, or rent assumptions and running the analysis again