Rental yield

For investors: net operating income, cap rate, cash flow and cash-on-cash return.

Purchase price$Down payment$Interest rate%AmortizationMonthly rents (total)$Vacancy rate%Municipal and school taxes / year$Insurance / year$Maintenance (% of revenue)%Management (% of revenue)%Other expenses / year (energy, snow removal)$Acquisition costs (welcome tax, notary…)$

Annual cash flow

-$2,910

-$242 per month after the mortgage payment

Gross annual revenue: $64,800
Effective revenue (after vacancy): $62,856
Operating expenses: $16,543
Net operating income (NOI): $46,313
Cap rate (NOI / price): 5.15%
Gross rent multiplier (GRM): 13.9
Annual debt service: $49,223
Debt coverage ratio (DCR): 0.94
Cash-on-cash return: -1.47%

Simplified pre-tax analysis, excluding appreciation and principal repayment. Lenders generally require a DCR of at least 1.1 to 1.2 for an income property. Let’s talk for a complete analysis of your project.

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