Investment calculator
Run the numbers before you buy.
Monthly cash flow, cap rate, cash-on-cash return and the cash you need at closing for a rental in Brownsville or on the island, with foreign-buyer financing assumptions you can change.
Investment calculator · Estimates
Run your numbers.
Illustrative estimates only, not financial advice or a guarantee of results. Assumptions are editable; taxes, insurance, rent and rates vary. Verify with a lender, insurer and CPA.
Definitions
What each number means.
The calculator starts from these assumptions. They are planning values, not market data or a loan quote; change any of them.
- Down payment
- 25% · foreign buyer 30% Est.
- Interest rate
- 7% + 1 pt for foreign buyers Est.
- Term
- 30 years Est.
- Vacancy
- 8% of gross rent Est.
- Maintenance
- 5% of collected rent Est.
- Property management
- 8% of collected rent Est.
- Closing costs
- 3% of the price Est.
- Property tax, when the listing has none
- 2.2% of the price a year Est.
- Insurance
- 1% of the price a year Est.
When a listing includes its annual tax and HOA dues, the calculator uses those instead. Financing guide
What is NOI (net operating income)?
The rent you actually collect in a year, after vacancy, minus operating costs: property tax, insurance, HOA dues, maintenance and management. It does not include the mortgage payment.
What is the cap rate?
NOI divided by the purchase price. It compares properties as if they were bought in cash, so financing does not change it. A higher cap rate means more income per dollar invested, often with more risk or work.
What is monthly cash flow?
What is left each month after operating costs and the mortgage payment (principal and interest). A negative number means you would add money every month under those assumptions.
What is cash-on-cash return?
Yearly cash flow divided by the cash you put in: down payment plus closing costs. It shows what your own money earns once the loan is included.
Why does the calculator subtract vacancy?
Because no rental is occupied 100% of the time: there are weeks between tenants and months without rent. The calculator starts at 8% of gross rent as an editable assumption; use more for vacation rentals.
What does the foreign-buyer switch change?
It sets the down payment to 30% and adds 1 point to the interest rate, a planning assumption for loans to buyers without a U.S. credit history. Published lender guides cite roughly 25% to 50% down; your lender’s offer is what counts.
General information only, not legal, tax or financial advice. Ricardo Salazar is a licensed real estate agent, not an attorney, CPA or lender. Consult qualified professionals in the U.S. and Mexico.
Second opinion
Shall we review your numbers?
Send the scenario and Ricardo will check it against comparable listings and the actual taxes of the properties you are considering.
Found numbers that work?
Ricardo can look for properties that fit that scenario and send you the shortlist on WhatsApp.