When evaluating any investment property it’s vital to to treat it as a business investment, two important starting points for evaluation are the capitalization rate and cash on cash return.

By evaluating the numbers it can help determine your success ratio for performance of your investment. By using the BuyersUtopia Investment Property Calculators and entering all the pertinent property information it will calculate a ROI ( Return on Investment) Cap Rate ( Capitalization Rate ) as well as Cash on Cash Return to help you choose your level of risk associated with acquiring investment property.

Investment property is a cash in cash out, income generator with costs, debits, and depreciation. Keep in mind other factors can influence the ROI of your investment property such as geographic and socioeconomic influences, but their is no better starting point than cap rate and cash on cash return as a preliminary analysis for your investment property due diligence:

Note: Our Free Investment Property Calculator is a great tool for quick analysis, but if you are a serious investor and want to do before and after tax calculations, IRR & Cash on Cash Returns and be able to adjust for bringing in partners then you should consider buying the Best Real Estate Investment Software

Investment Property Calculator

Property Address

PROPERTY_ADDRESS

Property Information

PROPERTY_INFO

**GRAPH**

Financing Information
Purchase Price	PURCHASE_PRICE
Cash Invested	CASH_INVESTED
Loan #1 Amount	LOAN_1_AMOUNT
&NBSP;&NBSP;&NBSP;Interest Rate	INTEREST_RATE_1
&NBSP;&NBSP;&NBSP;Monthly PI	LOAN_1_PI
&NBSP;&NBSP;&NBSP;Term in Months	TERM_IN_MONTHS1
Loan #2 Amount	LOAN_2_AMOUNT
&NBSP;&NBSP;&NBSP;Interest Rate	INTEREST_RATE_2
&NBSP;&NBSP;&NBSP;Monthly PI	LOAN_2_PI
&NBSP;&NBSP;&NBSP;Term in Months	TERM_IN_MONTHS2
Property & Depreciation Information
Land Value	LAND_VALUE
Personal Property	PERSONAL_PROPERTY
Building Value	BUILDING_VALUE
Personal property depreciation	PERSONAL_PROPERTY_DEPRECIATION at PERSONAL_PROPERTY_DEPR_RATE depreciation
Building depreciation	BUILDING_DEPRECIATION at BUILDING_DEPR_RATE depreciation
Total Depreciation	TOTAL_DEPRECIATION
Gross Operating Income
Annual Rent	ANNUAL_RENT
Less Vacancy	LESS_VACANCY
Gross Operating Income	GROSS_OPERATING_INCOME
Annual Expenses
Real Estate Taxes	REAL_ESTATE_TAXES
Utilities	UTILITIES
Insurance	INSURANCE
Maintenance/Repairs	MAINTENANCE_REPAIRS
Advertising	ADVERTISING
Admin/Legal	ADMIN_LEGAL
Supplies	SUPPLIES
Miscellaneous	MISC
Total operating expense	TOTAL_OPERATING_EXPENSE
Operating expense ratio	OPERATING_EXPENSE_RATIO
Tax and Appreciation Rates
Tax bracket	TAX_BRACKET
Appreciation rate	APPRECIATION_RATE
Cash Before Taxes
Gross Operating Income	GROSS_OPERATING_INCOME
Operating expense	– TOTAL_OPERATING_EXPENSE
Net Operating Income	= NET_OPERATING_INCOME
Annual Debt Service	– ANNUAL_DEBT_SERVICE
Cash Flow Before Tax	= CASH_FLOW_BEFORE_TAX
Cash After Taxes
Net Operating Income	NET_OPERATING_INCOME
Total Interest	– TOTAL_INTEREST
Total Depreciation	– TOTAL_DEPRECIATION
Taxable Income	= TAXABLE_INCOME
Tax Paid or Saved	– TAX_PAID_OR_SAVED
Cash flow after tax	CASH_FLOW_AFTER_TAX
Rates of return
Total appreciation	TOTAL_APPRECIATION
Return on Investment with appreciation	RETURN_ON_INVESTMENT_WITH_APPRECIATION
Return on Investment without appreciation	RETURN_ON_INVESTMENT_WITHOUT_APPRECIATION
Cap Rate	CAP_RATE
Cash on Cash	CASH_ON_CASH

Sch

CAP Rate or capitalization rate is used to determine the current or present value of a property that will create future earnings. It is a determining number used to estimate the projected value of an asset class of properties. It is also a discount rating and calculated by:===========================================
Net Operating Income (NOI) / Purchase Price = Capitalization Rate.
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Cash Flow is money going in and out of your investment property, and is determined by three things to look at annually: rents, expenses, and debt service. A simple cash flow formula:

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Annual Rents – Annual Expenses – Annual Debt Service = Cash Flow
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Cash-on-Cash Return – The cash-on-cash return is the ratio of annual before-tax cash flow to the total amount of cash invested. Cash on cash formula:

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Cash Flow / Down Payment = Cash-on-Cash Return
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ROI return-on-investment cash dictates how much profit you will make on your multifamily property investment.

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Total Financial Benefits / Down Payment= Return-on-Investment (ROI)
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