Property Deal Analyzer
Suppose a rental property generates:
Monthly Rental Income: 50,000
Annual Operating Expenses: 100,000
Annual Mortgage Payments: 250,000
First, calculate the annual rental income: 50,000 × 12 = 600,000
Then subtract the annual operating expenses and mortgage payments: 600,000 - 100,000 - 250,000 = 250,000 Estimated Annual Cash Flow: 250,000
Property Deal Analyzer
A property can look attractive at first glance, but the purchase price is only one part of the picture.
Rental income, expenses, financing, renovation costs and the amount of cash invested can all change how the numbers look.
The Prozameen Property Deal Analyzer brings these figures together so you can review a property from several financial angles before making your own assessment.
What Does the Property Deal Analyzer Show?
Enter the available property and financing details, and the tool will calculate useful metrics such as:
- Estimated Loan Amount
- Total Cash Invested
- Annual Rental Income
- Net Operating Income
- Estimated Annual Cash Flow
- Rental Yield
- Loan-to-Value Ratio
- Cash-on-Cash Return
- Estimated Annual ROI
Rather than looking at one number in isolation, you can see a broader financial picture of the property.
How to Use the Tool
Enter:
- Property Purchase Price
- Down Payment
- Purchase Costs
- Renovation Costs
- Monthly Rental Income
- Annual Operating Expenses
- Annual Mortgage Payments
The tool will automatically calculate the property metrics and present them in a clear summary.
Understanding the Results
Estimated Loan Amount
This is the portion of the property price remaining after the down payment.
Loan Amount = Property Price - Down Payment
Total Cash Invested
This shows the estimated amount of your own money committed upfront.
Total Cash Invested = Down Payment + Purchase Costs + Renovation Costs
Annual Rental Income
Monthly rent is converted into estimated annual rental income.
Annual Rental Income = Monthly Rent × 12
Net Operating Income
Net Operating Income, or NOI, represents rental income remaining after operating expenses.
NOI = Annual Rental Income - Annual Operating Expenses
Mortgage payments are not included in NOI.
Estimated Annual Cash Flow
Annual cash flow shows what may remain after operating expenses and annual mortgage payments.
Annual Cash Flow = Annual Rental Income - Annual Operating Expenses - Annual Mortgage Payments
A negative result means the entered expenses and debt payments are higher than the entered rental income.
Estimated Rental Yield
Rental yield compares net annual rental income with the property purchase price.
Rental Yield = NOI ÷ Property Price × 100
Loan-to-Value Ratio
Loan-to-Value, or LTV, compares the estimated loan amount with the property's purchase price.
LTV = Loan Amount ÷ Property Price × 100
Cash-on-Cash Return
Cash-on-cash return compares annual cash flow with the amount of cash invested.
Cash-on-Cash Return = Annual Cash Flow ÷ Total Cash Invested × 100
Estimated Annual ROI
The tool can also estimate annual operating return relative to the total property acquisition cost.
ROI = NOI ÷ Total Investment Cost × 100
Where:
Total Investment Cost = Property Price + Purchase Costs + Renovation Costs
Why Use a Property Deal Analyzer?
Real estate decisions often involve several moving parts.
A property may have strong rental income but high expenses. Another property may require a larger upfront investment but have lower financing costs.
Looking at several metrics together can make it easier to understand how the numbers relate to one another.
The tool is designed to support your research—not make the decision for you.
Important Information
The Property Deal Analyzer provides estimates based entirely on the information entered.
Actual property performance may be affected by vacancy, unexpected repairs, taxes, insurance, financing changes, interest rates, rental-market conditions, property appreciation and other factors.
The tool does not label a property as a good deal or bad deal and does not recommend whether you should buy, sell or invest.
