See the opportunity.
Understand the plan.
A short, hands-on lesson using fictional properties. Explore freely: this exercise never changes your saved evaluation.
- 1Understand the base
- 2Explore a change
- 3Choose your next step
A rental with room to operate
A neighborhood home with a lease-based operating plan. Its modeled rent supports the recurring budget, debt and replacement funding.
Start with what supports the opportunity. Read the cash breakdown, then explore how price, income and costs affect the plan.
See the starting assumptions
- Purchase price
- $215,000
- Down payment
- 25%
- Fixed-rate loan
- 6.75% · 30 years
- Starting reserve
- $18,000
- Replacement funding
- $2,400/year
- Lease rent
- $2,500/month
- Vacancy / nonpayment
- 5%
Figures are illustrative assumptions, not local market data. The base LTR example uses an itemized $6,500 annual fixed-cost budget and 12% revenue-based costs; the STR uses $13,000 fixed costs, 25% revenue-based costs, and $15 per occupied night.
Follow the annual cash
- Collected rent / room revenue
- $28,500
- Operating expenses
- -$9,920
- Loan principal & interest
- -$12,550
- Replacement funding
- -$2,400
- Cash flow after funding
- $3,630
Collected rent includes the example’s vacancy/nonpayment allowance. Figures are fictional, annual and pre-tax. Cash at acquisition is a separate, one-time amount.