Investment Strategy Comparison
Compare Investment Strategies
Need help? View the calculator instructions
Property Details
Market Conditions
Financial Parameters
Rental Rate Overrides
Show Custom Rates ▼
Need more help using this calculator? View the Calculator Documentation
How to Use This Calculator
Property Details
Enter the basic information about the property you're considering:
- Purchase price - The total cost to acquire the property
- Property type - Select between single family, multi-family, or condo
- Market type - Choose urban, suburban, or vacation/resort location
- Property condition - Rate from excellent to poor, affects renovation costs
- Square feet and bedrooms - Used to estimate rental rates and renovation costs
Market Conditions
Input current market factors that will affect your investment:
- Annual market growth - Expected yearly appreciation rate for the area
- Rental demand - Local rental market strength affects vacancy rates
- Market seasonality - Important for vacation rentals and price fluctuations
Financial Parameters
Set your financing and investment timeline:
- Down payment percentage - Affects monthly payments and initial investment
- Interest rate - Current mortgage rate you qualify for
- Planned holding period - How long you plan to keep the investment
Custom Rental Rates
Override the calculator's estimated rates if you have better data:
- Toggle custom rates to input your own monthly and nightly rental figures
- Compare your custom rates against our estimates based on market data
- Use this feature when you have actual rental comps for the area
Understanding Results
The calculator will analyze and rank different investment strategies:
- Fix and Flip - Quick renovation and resale (only shown for properties needing work)
- Long-term Rental - Traditional rental approach with steady monthly income
- Vacation Rental - Short-term rental strategy (shown for suitable locations)
Key Metrics Explained
For each strategy, you'll see:
- Annual Cash Flow - Expected yearly income after all expenses
- Total Profit - Projected earnings over your holding period
- Required Investment - Initial capital needed to execute the strategy
- ROI - Return on investment percentage to compare strategies
- Key assumptions used in the calculations
Best Practices
To get the most accurate results:
- Research local market conditions and input accurate growth rates
- Verify rental rates with local property managers or rental listings
- Consider seasonality effects, especially for vacation markets
- Account for all costs in your renovation estimates
- Review assumptions for each strategy to validate the projections