MultiverseOSPRental Property Cash Flow, Cap Rate and Cash-on-Cash: A Worked Example
Before comparing properties, put every one through the same math. This walkthrough uses example numbers you can replace with your own.
Try the free Rental property cash flow calculator as you read.
Worked example
A $280,000 property with 20% down at an example 7% rate over 30 years has a principal-and-interest payment of about $1,490 a month. Rent of $2,300 with 5% vacancy is $2,185 effective. Subtract $650 of taxes, insurance and repairs and 8% management ($184): NOI is about $1,351 a month, $16,212 a year, a cap rate of about 5.8%. Cash flow is about -$139 a month, so this example does not cash-flow at these assumptions.
Costs people forget
Vacancy, repairs and capital replacements, management, insurance increases, and for short-term rentals cleaning, supplies and platform fees.
Step by step
- Estimate effective rent Rent minus vacancy.
- Subtract operating costs Taxes, insurance, HOA, repairs, management.
- Compute NOI and cap rate NOI / price.
- Subtract the loan payment for cash flow Then cash-on-cash = yearly cash flow / cash invested.
Do it with your own numbers: the Rental Property & Airbnb Host Spreadsheet ($19) deal analyzer for long- or short-term rentals, plus bookings, expenses and a monthly P&L.
FAQ
Is the payment a loan quote?
No. It is a math estimate, not an offer. Lenders add escrow and fees.
Is this investment advice?
No. It is general education.
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Informational tool only. Not financial, tax, or legal advice. Written by MultiverseOSP with AI assistance; examples checked by hand. Last updated October 16, 2026.