Property Information
Used for local tax rate lookup
Get a free API key (50 calls/month) to auto-fetch property data
Get a free API key (50,000 calls/month) to auto-fetch local tax rates
Purchase & Financial Details
Break-Even Rent Analysis
Minimum monthly rent needed to cover expenses (varies by year due to inflation)
YEAR 1
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Starting expenses
AVERAGE
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Target rent
YEAR 20
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Projected end
How to use this:
• Year 1: Can you rent it out today at a profit?
• Average: Charge this or more to stay profitable throughout ownership
• Year 20: Will your current rent still cover costs at the end?
• Year 1: Can you rent it out today at a profit?
• Average: Charge this or more to stay profitable throughout ownership
• Year 20: Will your current rent still cover costs at the end?
Note: You can choose to finance the property using the financing options below, or pay cash.
Financing Options
Check this box if you plan to finance the purchase. Monthly mortgage payments will be added to your expenses.
Ownership Type
Check this box if the owner will live in the property themselves. This affects eligibility for certain tax relief programs and homestead exemptions.
Cost Inflation Projections
Why This Matters: Your expenses won't stay the same over 20 years. Property taxes, insurance, and fees typically increase annually. These projections help you understand the true long-term cost.
Property Tax Growth Context:
• National average: Property taxes grew ~3-4% annually over the past 20 years
• Recent trend (2020-2025): Many areas saw 5-10% annual increases
• Varies significantly by state and local budgets
• Conservative estimate: 4.5% annually
• Aggressive estimate: 6-8% annually
Property tax increases come from both: (1) rising property values (appraisals), and (2) increased mill levies/rates as local governments expand budgets.
• National average: Property taxes grew ~3-4% annually over the past 20 years
• Recent trend (2020-2025): Many areas saw 5-10% annual increases
• Varies significantly by state and local budgets
• Conservative estimate: 4.5% annually
• Aggressive estimate: 6-8% annually
Property tax increases come from both: (1) rising property values (appraisals), and (2) increased mill levies/rates as local governments expand budgets.
Impact of Inflation: Even modest annual increases compound significantly over time. For example, at 4.5% annual growth, your property taxes will more than double in 16 years. The calculator accounts for these increases in all projections.
Investment Horizon & Property Appreciation
About Investment Horizon: Choose how long you plan to own the property. After this period, you could sell the property or continue renting to other tenants. This calculator will show you the property's projected value at the end of this period.
US Real Estate Appreciation Context:
• US national average: 3-4% annually (long-term historical)
• Major metro areas: 4-6% historically
• Small/rural towns: 1-2% or lower
• Recent years (2020-2024): Many areas saw 5-15% annual growth (unsustainable)
• Default: 1.5% (conservative for smaller markets)
Appreciation varies dramatically by location, economic conditions, and population trends. Use local market data when available.
• US national average: 3-4% annually (long-term historical)
• Major metro areas: 4-6% historically
• Small/rural towns: 1-2% or lower
• Recent years (2020-2024): Many areas saw 5-15% annual growth (unsustainable)
• Default: 1.5% (conservative for smaller markets)
Appreciation varies dramatically by location, economic conditions, and population trends. Use local market data when available.
Alternative Investment Comparison
Investment Comparison Defaults:
• S&P 500: ~10% average annual return (historical long-term average with dividends reinvested)
• High-Yield Savings Account: ~4.0% APY (current rates as of early 2026)
• Custom: Enter your own expected return rate
Note: Stock market returns vary significantly year-to-year. The 10% is a long-term average. Past performance doesn't guarantee future returns. HYSA rates are variable and may decrease when Fed cuts rates.
• S&P 500: ~10% average annual return (historical long-term average with dividends reinvested)
• High-Yield Savings Account: ~4.0% APY (current rates as of early 2026)
• Custom: Enter your own expected return rate
Note: Stock market returns vary significantly year-to-year. The 10% is a long-term average. Past performance doesn't guarantee future returns. HYSA rates are variable and may decrease when Fed cuts rates.
Annual Property Costs
How This Calculator Handles Property Taxes:
Method Used: This calculator uses the effective tax rate method for simplicity and accuracy across all US locations.
Effective Tax Rate = Annual Property Tax ÷ Market Value
Why this method?
• Different states/counties use different assessment ratios and mill levies
• Some assess at 100% of market value, others at 10%, 11.5%, 15%, etc.
• Mill levies (tax rates per $1,000 of assessed value) vary widely
• The "effective rate" cuts through this complexity
• It directly answers: "What % of my property's market value will I pay in taxes?"
Example Calculation:
• Property market value: $100,000
• Effective tax rate: 1.5%
• Annual property tax = $100,000 × 1.5% = $1,500/year
How to Find Your Rate:
1. Best: Use the "Lookup Local Tax Rate" button above (requires free API key)
2. Good: Check recent tax bills for similar properties in the area
3. Okay: Visit your county assessor's website and calculate: (annual tax ÷ sale price)
Typical Ranges:
• Low tax states (HI, AL, LA): 0.3-0.6%
• Mid-range (CA, NV, AZ, FL): 0.7-1.2%
• High tax states (NJ, IL, NH, TX, CT): 1.5-2.5%+
Note: This is different from the "mill levy" system used in some states, but produces the same annual tax amount.
Method Used: This calculator uses the effective tax rate method for simplicity and accuracy across all US locations.
Effective Tax Rate = Annual Property Tax ÷ Market Value
Why this method?
• Different states/counties use different assessment ratios and mill levies
• Some assess at 100% of market value, others at 10%, 11.5%, 15%, etc.
• Mill levies (tax rates per $1,000 of assessed value) vary widely
• The "effective rate" cuts through this complexity
• It directly answers: "What % of my property's market value will I pay in taxes?"
Example Calculation:
• Property market value: $100,000
• Effective tax rate: 1.5%
• Annual property tax = $100,000 × 1.5% = $1,500/year
How to Find Your Rate:
1. Best: Use the "Lookup Local Tax Rate" button above (requires free API key)
2. Good: Check recent tax bills for similar properties in the area
3. Okay: Visit your county assessor's website and calculate: (annual tax ÷ sale price)
Typical Ranges:
• Low tax states (HI, AL, LA): 0.3-0.6%
• Mid-range (CA, NV, AZ, FL): 0.7-1.2%
• High tax states (NJ, IL, NH, TX, CT): 1.5-2.5%+
Note: This is different from the "mill levy" system used in some states, but produces the same annual tax amount.
Insurance Requirements: If you finance the property, your lender will require landlord insurance. Even with cash purchase, it's highly recommended. Landlord insurance covers the building and your liability. You can require your tenant to have renter's insurance (typically $14-25/month) to cover their belongings.
Maintenance Cost Guidance: Industry experts recommend budgeting 1-4% of property value annually. For a $60,000 property, 2% = $1,200/year. This covers routine maintenance, repairs, and building an emergency fund. Older properties may need 3-4%.
Financial Summary
Annual Revenue
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From rental income
Annual Expenses
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All costs combined
Net Annual Cash Flow
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Revenue - Expenses
Monthly Breakdown
| Category | Year 1 Monthly | Year 1 Annual |
|---|
Note: These are Year 1 costs. With inflation enabled, your actual costs will increase over time. See the expense inflation analysis below for projected increases.
Expense Inflation Impact Over Time
Total Expenses Over 20 Years
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Including inflation vs. $0 if costs never increased
Year 1 Total Expenses
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Starting annual costs
Year 20 Total Expenses
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Projected costs in final year
| Year | Property Tax | Insurance | Maintenance | Fees | Total Annual | Cash Flow |
|---|
Investment Recovery Analysis
Time to Break Even
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Property Value Appreciation Analysis
Purchase Price
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Initial investment
Projected Future Value
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After 0 years at 0% annual growth
Property Appreciation
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Total value gained
Total Cash Flow
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Cumulative rent profit/loss
Combined Return
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Appreciation + Cash Flow
Total Return on Investment (ROI)
0%
Annualized: 0% per year
Investment Comparison Analysis
What if you invested the $0 in the stock market instead?
Property Investment
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Property value + cumulative cash flow
ROI: 0%
Annualized: 0%/year
Annualized: 0%/year
Alternative Investment
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If invested at 0% annual return
ROI: 0%
Annualized: 0%/year
Annualized: 0%/year
Investment Comparison Result
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Comparison result
Renter Relationship
Important Considerations
Legal & Regulatory Requirements:
• You must maintain habitable living conditions
• Required to make repairs promptly
• Cannot discriminate in housing practices (Fair Housing Act)
• Should have written lease even for family
• Consider requiring renter's insurance from tenant (typically $15-30/month)
• Keep detailed records of all income and expenses for taxes
• Property maintenance expenses are tax deductible
• You can depreciate the property value over 27.5 years for tax purposes
• Local and state laws vary - consult with a local real estate attorney
Note: Landlord-tenant laws vary significantly by state. Research your specific state's requirements for security deposits, notice periods, eviction procedures, and habitability standards.
• You must maintain habitable living conditions
• Required to make repairs promptly
• Cannot discriminate in housing practices (Fair Housing Act)
• Should have written lease even for family
• Consider requiring renter's insurance from tenant (typically $15-30/month)
• Keep detailed records of all income and expenses for taxes
• Property maintenance expenses are tax deductible
• You can depreciate the property value over 27.5 years for tax purposes
• Local and state laws vary - consult with a local real estate attorney
Note: Landlord-tenant laws vary significantly by state. Research your specific state's requirements for security deposits, notice periods, eviction procedures, and habitability standards.
Hidden Costs to Consider:
• Vacancy periods (no rental income)
• Major repairs (roof, HVAC, plumbing)
• Legal fees if disputes arise
• Travel costs to/from property for maintenance
• Potential need for property manager
• Accounting/tax preparation fees
• Vacancy periods (no rental income)
• Major repairs (roof, HVAC, plumbing)
• Legal fees if disputes arise
• Travel costs to/from property for maintenance
• Potential need for property manager
• Accounting/tax preparation fees