What the property really returns after every cost, and what that return is on the equity sitting inside it.
Most small landlords judge a rental on the rent cheque. The number that actually matters is what it returns after everything, and what that return represents on the equity sitting inside the property doing nothing.
Put your real figures in. Nothing is sent anywhere.
Monthly unless the label says otherwise.
| Line | What usually happens |
|---|---|
| Capital set-aside | Left at zero, because the roof has not failed yet. On older Tulsa stock the roof, HVAC, water heater and supply plumbing all arrive within a few years of each other, and that bill is real whether or not it is budgeted |
| Your own management | Entered as zero because you do it yourself. That is a genuine cost in hours, and it is the thing most landlords actually want to stop doing |
| Turn costs | Underestimated, because the last turn was years ago. Materials and labour have risen faster than rents on older stock |
It will not tell you what to do with the money if you sell. That is investment advice and we are property buyers, not advisers. It also leaves out appreciation, depreciation recapture and capital gains, all of which are real and all of which depend on facts specific to you. Our guide to capital gains on an Oklahoma sale is a starting point and a CPA is the finishing one.
On tax. We are not accountants and this is not tax advice. Basis, exclusions and what is owed depend on facts specific to you, and the rules change. Speak to a CPA or tax adviser before making a decision that turns on the tax position.
What it does show is the honest annual return on the equity currently sitting in the property. That number is worth knowing either way, including if the answer is that the rental is performing well and you should keep it.
Take the rent, subtract vacancy, management, tax, insurance, maintenance, turn costs, a set-aside for big-ticket items and the mortgage. What is left is the cash flow. Divide it by the equity sitting in the property and you have the return that capital is actually earning.
An annual amount put aside for the roof, HVAC, water heater and plumbing. Landlords routinely leave it at zero because nothing has failed yet, but on older Tulsa stock those items tend to arrive within a few years of each other and the bill is real whether or not it was budgeted.
In cash terms yes, but it is not free. It is hours, and it is usually the part landlords most want to stop. Enter a percentage if you want to see what the property returns without you working on it.
No. It leaves out appreciation, depreciation recapture and capital gains, all of which are real and all of which depend on facts specific to you. A CPA is the right person for that side.
Yes. We buy with the lease in place and take over as landlord at closing, so nobody has to be moved out and you are not running an eviction to make a sale possible.
Yes. If you hold two, three or five we will price them together as a single transaction rather than making you sell one at a time and carry the rest while you do.
A calculator works from what you type in. An offer works from the property itself, the condition and what comparable houses nearby have actually sold for.
No fees, no obligation, and your property is never listed publicly.