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Cap Rate & Cash Flow

Investment quality check + detailed rental cash flow

Property & Income

Purchase price$600,000
Annual gross rent$36,000
Vacancy rate5%
Monthly rent
$
Effective monthly: $3,000

Operating Expenses

Quick preview
Weak · 3.4% cap
GRM16.7
NOI$20,400/yr
Cap rate3.4%

Comparable cap rates

Toronto
3.5%
Vancouver
3.0%
Calgary
5.0%
Edmonton
6.0%
Montreal
4.5%
Ottawa
4.8%
Hamilton
5.2%
Winnipeg
5.5%
Analysis results

Cash-flow negative

Cap rate: 3.4%
Cap rate
3.4%
Unlevered yield
GRM
16.7
Price ÷ gross rent
NOI
$20,400/yr
Net operating income

Is this a good deal?

Cap rate above 6% would be - most investors target 6%+ for buy-and-hold
Cash flow negative - you would need to supplement ~$1,248/mo from other income
Cash-on-cash low - consider a lower purchase price or higher down payment

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Estimates only - for guidance, not a guarantee. Verify rents, expenses, taxes and lender terms before purchasing. Not financial advice.

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