Evaluate rentals with cap rate, cash flow, and financing insights.
Estimate gross rent and other income, accounting for vacancy assumptions and market comparables.
Include taxes, insurance, maintenance, property management, and reserves for capital expenditures.
Net operating income divided by purchase price. Compare to local market benchmarks.
Evaluate down payment, rates, and amortization to determine cash-on-cash returns and leverage risk.
Balance returns against risk and liquidity
| Feature | Single-Family | Multi-Family |
|---|---|---|
| Vacancy Risk | Higher | Lower |
| Management Complexity | Lower | Higher |
| Diversification | Limited | Better |
Evaluate leverage and amortization schedules. Stress-test with rate changes and vacancy assumptions to safeguard cash flow.
Clear answers to common investment property questions
Review market comparables, property condition, and amenities. Consider vacancy rates and tenant retention strategies.
Maintain reserves for repairs, vacancies, and capital expenditures to stabilize operations through cycles.
Assess time, local regulations, and tenant relations. Professional management can add value for larger or distant portfolios.
Landlord policies cover property and liability. Review coverage limits and deductibles relative to reserves.