Investment Property Calculator

Cap rate is a property's net operating income divided by its purchase price — a quick way to compare properties regardless of financing. There's no universal "good" number; it depends on the property type, area, and how much risk you're comfortable with. Northwest Ohio's lower price points can put cap rates higher than you'd see in a hot coastal market, but that also usually means a smaller, thinner renter pool — worth weighing together, not just the number alone.

Cap rate ignores financing entirely — it's what the property itself yields as if bought in cash. Cash-on-cash return accounts for your actual financing, measuring the cash flow you receive against the actual cash you put in (down payment plus closing costs). Two identical properties can have the same cap rate but very different cash-on-cash returns depending on how they're financed.

Property taxes, insurance, routine maintenance, and property management (if you're not self-managing) all belong in that number — it's your own estimate to adjust, not a fixed figure this tool assumes for every property. Dave can help you build a realistic operating expense picture for a specific property and area rather than a generic assumption.

Even a currently-occupied property will have vacancy between tenants eventually, and underwriting a property as if it's rented 100% of the time is one of the most common ways an investor's numbers turn out too optimistic. Building in a realistic vacancy assumption for the specific area — which varies town to town in Northwest Ohio — gives you a more honest picture.

Yes — Dave can walk through comparable rents, typical vacancy, and rough operating costs for a specific area so you're underwriting against local reality instead of a generic assumption. He also sees off-market opportunities through his auction work, including estates and rental portfolios changing hands, before they're broadly listed.