Investment underwriting · Income analysis
See what the rent can really return.
Turn the purchase price, achievable rent and day-to-day expenses into a clear view of gross yield, net yield and annual cash flow.
Use the calculatorRental yield calculator
Find the return behind the rent.
Start with today’s best assumptions. Then adjust vacancy or costs to see how resilient the income could be.
Gross Rental Yield
Net Rental Yield
Cashflow
Payback Period
Underwrite the income
Yield improves when every assumption survives diligence.
Use the calculator to organize assumptions. Use documents, current quotes and licensed professionals to confirm the decision.
Legal and practical demand
Sublet rules, occupancy restrictions, layout, condition and neighborhood demand affect whether the modeled rent is achievable.
Recurring and irregular expenses
Common charges, maintenance, taxes, insurance, management, repairs, vacancy and assessments all affect net yield.
Return beyond year one
Resale audience, transaction costs, capital work and holding period matter even when initial yield looks attractive.
Frequently asked questions
Rental-yield questions, answered.
What is gross rental yield?
Gross yield generally divides annual rent by property price or basis before operating expenses.
What is net rental yield?
Net yield subtracts recurring operating expenses and vacancy assumptions before comparing income with the property basis.
Should mortgage payments be included?
Yield often evaluates the property before financing. Cash-on-cash return and ROI are better suited to measuring the investor’s financed cash outcome.
Why should I stress-test vacancy and expenses?
A small change in occupancy or recurring costs can materially alter net income, especially when the starting yield is modest.
Income, risk and exit
Underwrite the apartment before the return becomes a promise.
Rental yield
Gross yield is useful for screening. Net yield is closer to reality.
Rent divided by purchase price can help compare opportunities quickly, but carrying costs, vacancy, repairs, management and capital work determine how much income the property actually produces.
Use realistic market rent.
Base the model on supportable rent and lease terms rather than an optimistic asking figure.
Do not assume twelve perfect months.
Turnover, leasing time and collection risk should be reflected when estimating annual income.
Subtract recurring ownership costs.
Taxes, common charges or maintenance, insurance, management and routine repairs reduce the income available to the owner.
Large future expenses can overwhelm a thin yield.
Renovation, assessments, appliances and building projects should be considered separately from normal operating costs.
Yield and leveraged cash return are different metrics.
A mortgage changes cash flow and return on invested equity even though it does not change the property’s unlevered gross yield.
Income is only one part of the investment case.
Resale demand, liquidity, appreciation potential and transaction costs also belong in the long-term decision.
