A plain tool for vetting the financial feasibility of an investment property. Enter the numbers and see whether the rent covers the costs, the monthly cash flow, your return on cash, and whether the income services the loan. It won't tell you a property is "the best deal," and it doesn't forecast prices. It answers a simpler, more useful question: does this one work? Hover any ? for a plain-language explanation.
The headline question: does this beat the market? Your total position in the property, the equity you could cash out, plus the rent you've collected, against the same starting cash compounding in your alternative. Where the property line climbs above the fund line is when it "beats the market," under your assumptions.
A rental builds wealth three ways at once, value growth (appreciation), the mortgage being paid down for you, and cash flow. Cash flow is often negative in the early years, but the green line is your net wealth built, positive from the start. Based on your assumptions; before taxes and selling costs.
How equity could build from loan paydown and your assumed appreciation, even while the bank holds the mortgage.
Important. This calculator is an educational estimate for gauging feasibility, not financial, investment, tax, or legal advice, and not an offer of credit. It relies on figures you enter and on simplified assumptions, so it cannot capture your full situation, actual results will differ. The mortgage rate shown is a national average from Freddie Mac and is not a quote; your rate will vary. Any appreciation, rent-growth, or resale figures are hypothetical projections, not predictions. Bela Realty & Investments is not a lender, financial advisor, or tax advisor. Before acting, consult the appropriate licensed professionals, and talk with us, so we can pressure-test the numbers against the real market.