What metrics does the rental analysis include?

Every analysis includes monthly cash flow, cap rate, cash-on-cash return, DSCR, gross rent multiplier, operating expenses breakdown, and a 0-100 AI deal score with investment recommendation.

Is the rental property analyzer free?

Yes. The free plan gives you 3 full AI analyses per month with all financial metrics and deal scoring. No credit card required. Upgrade for more analyses and features like stress testing and PDF exports.

Rental Property Analyzer — Arvo | Cash Flow & Cap Rate Calculator

Q: What is a good cap rate for a rental property?

There is no universal good cap rate; it depends on the market. Expensive coastal cities often trade at 4-5% cap rates, while many Midwest and Southern markets run 7-9%. A higher cap rate means more income relative to price but often more risk. Compare a property against other rentals in the same area rather than to a fixed target.

Q: What is the 1% rule in real estate?

The 1% rule says a rental's monthly rent should be at least 1% of its purchase price, so a $200,000 property should rent for $2,000 or more per month. It's a fast first filter, not a full analysis; properties that pass still need a complete cash flow projection.

Full rental underwriting in seconds

Stop building rental spreadsheets from scratch. Arvo pulls market rents, calculates every metric, and tells you if the deal works.

Monthly Cash Flow

See your net monthly cash flow after mortgage, taxes, insurance, vacancy, maintenance, and property management. No hidden assumptions.

Cap Rate & CoC Return

Instant cap rate, cash-on-cash return, and gross rent multiplier calculated from live market data. Compare deals at a glance.

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DSCR Analysis

Know if your rental passes DSCR lending requirements. Arvo calculates debt service coverage ratio and flags deals below common thresholds.

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Market Rent Estimates

AI-powered rent estimates based on comparable rentals in the area, adjusted for bedrooms, square footage, condition, and neighborhood demand.

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AI Deal Score (0-100)

Every rental gets scored on cash flow strength, market fundamentals, risk factors, and growth potential. Skip marginal deals and focus on winners.

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Stress Testing

Pro plans include vacancy stress tests, interest rate sensitivity, and expense shock scenarios. Know your worst-case numbers before buying.

Analyze a rental in 3 steps

Enter the property address

Type any US address. Arvo pulls property details, tax records, and market context instantly.

Set your purchase terms

Input your purchase price, down payment, interest rate, and expected rent. Or let Arvo estimate the rent for you.

Get your full rental analysis

See cash flow, cap rate, DSCR, cash-on-cash return, expense breakdown, deal score, and an AI-written investment synopsis.

How to analyze a rental property

A rental property is only a good investment if the numbers work — and you can know whether they do before you make an offer. Analyzing a buy-and-hold rental means projecting the income, subtracting every real expense, and measuring the result against the cash you put in. A rental property calculator like Arvo runs these numbers in seconds, but every serious landlord should understand the four metrics below.

Monthly cash flow: the number that pays you

Cash flow is what's left each month after the property pays for itself. The mistake new investors make is forgetting that the mortgage is only part of the cost. A complete cash flow projection subtracts the mortgage (principal & interest), property taxes, insurance, and four operating reserves that always come due eventually:

Cash Flow = Gross Rent − Mortgage − Taxes − Insurance − Vacancy − Maintenance − CapEx − Management

Conservative defaults are 5–8% of rent for vacancy, 5–10% for maintenance and capital expenditures, and 8–10% for property management (even if you self-manage, your time has value). Arvo bakes these reserves in from day one so a deal never looks better on screen than it will in your bank account.

Cap rate: comparing deals on a level field

The capitalization rate measures a property's unleveraged yield — its net operating income (NOI) divided by price. It lets you compare two very different properties without financing muddying the picture.

Net Operating Income = Gross Rent − All Operating Expenses (excluding mortgage)
Cap Rate = NOI ÷ Purchase Price

Cap rates vary by market — 4–5% in expensive coastal cities, 7–9% in the Midwest and South. There's no single "good" cap rate; what matters is how it compares to other properties in the same area.

Cash-on-cash return: your actual return on invested cash

Because most investors finance, cash-on-cash return is often the most useful number: it's your annual pre-tax cash flow divided by the actual cash you invested (down payment + closing + rehab).

Cash-on-Cash Return = Annual Pre-Tax Cash Flow ÷ Total Cash Invested

Worked example: a $200k single-family rental

Monthly rent	$1,800
Operating expenses + reserves	−$650
Mortgage (P&I, 20% down @ 7%)	−$1,064
Monthly cash flow	$86
Annual cash flow	$1,032
Cash invested (down + closing)	$46,000
Cash-on-cash return	2.2%

This deal cash-flows, but thinly — a single major repair could wipe out a year of profit. That's the kind of marginal deal Arvo's score flags so you can negotiate harder or walk away.

The 1% rule and DSCR: fast screens

The 1% rule is a quick filter: monthly rent should be at least 1% of the purchase price (a $200,000 home renting for $2,000+). It's harder to hit in today's market, but it's a useful first pass. Lenders, meanwhile, care about DSCR (debt service coverage ratio) — NOI divided by annual debt service. Most DSCR loans require a ratio of 1.20–1.25 or higher. Arvo calculates DSCR on every deal and flags whether it clears typical lending thresholds. See a full sample rental report or analyze your first rental free.

Related calculators: Fix and flip analyzer · BRRRR calculator · Wholesale deal analyzer

Common questions about rental analysis

Arvo analyzes comparable rentals in the area using live market data, adjusting for property size, condition, bedroom count, and neighborhood demand. You can also override the estimate with your own rent figure.

Mortgage payment (P&I), property taxes, insurance, vacancy reserve, maintenance reserve, and property management fees. All are calculated using local market averages and can be customized.

Yes. You can input total rental income across multiple units. Arvo handles the analysis whether it's a single-family rental, duplex, triplex, or small multi-family property.

Yes. The free plan includes 3 full rental analyses per month. No credit card required. Upgrade to Pro for stress testing, PDF exports, and up to 75 analyses per month.

There is no universal "good" cap rate — it depends entirely on the market. Expensive coastal cities often trade at 4–5% cap rates, while many Midwest and Southern markets run 7–9%. A higher cap rate means more income relative to price but often more risk or a softer location. The right way to use cap rate is to compare a property against other rentals in the same area, which Arvo does automatically.

The 1% rule is a quick screen that says a rental's monthly rent should be at least 1% of its purchase price — for example, a $200,000 property should rent for $2,000 or more per month. It's a fast first filter, not a full analysis; properties that pass still need a complete cash flow projection. Arvo runs the full underwriting so you don't rely on rules of thumb alone.

DSCR (debt service coverage ratio) is a property's net operating income divided by its annual mortgage payments. It tells a lender whether the rent comfortably covers the debt. Most DSCR loans require a ratio of 1.20 to 1.25 or higher, meaning the property earns 20–25% more than its loan payment. Arvo calculates DSCR on every deal and flags whether it clears common lending thresholds.

Know your cash flow before you buy.