Cap rate, cash flow, cash-on-cash return, DSCR, and max offer — explained in plain English, with the full analyzer built right into this page so you can try it as you read.
Deal Ledger takes a rental property's numbers — or just an address — and answers three questions in under a minute:
No spreadsheets. No manual cap rate math. Just the numbers you need to make a fast, confident call.
| Your Goal | What to Fill In | What You Get |
|---|---|---|
| "I found a listing — is this a good deal?" | Purchase price, down payment %, interest rate, loan term, monthly rent, and rough expense estimates | Cash flow, cap rate, cash-on-cash return, DSCR, break-even occupancy, and a plain-English verdict |
| "What's the max I should offer?" | Rent and expense fields, plus your target cash-on-cash return and/or target DSCR in Optional Tools | The highest price you can pay and still hit your target return — checked against comps if entered |
| "I don't know the comps or square footage" | Just the property address | Auto-filled square footage, 3 nearby comps, and an estimated market value |
| "Is this asking price fair?" | Run a comps lookup first, then enter the purchase price and run the analysis | The "Value vs. Comps" metric — exactly how far above or below market the price sits |
| "How much negotiating room do I have?" | Run the max offer calculator first, then enter your actual offer price | A direct comparison showing how far your offer sits from your calculated ceiling |
| "I want a record to share with a partner or lender" | Complete a full analysis first | A clean, branded one-page PDF report — ready to save, print, or send |
| Term | What It Means |
|---|---|
| Cap Rate | Annual income ÷ purchase price. Higher generally means better income relative to what you paid — but ignores financing entirely. |
| Cash-on-Cash Return | Annual cash flow ÷ actual cash invested (down payment + closing + rehab). Accounts for financing, unlike cap rate. |
| DSCR | Debt Service Coverage Ratio — how many times over the property's income covers the mortgage payment. Below 1.0 means it doesn't cover the loan at all. Lenders typically want 1.2+. |
| Break-Even Occupancy | The minimum occupancy needed to cover all costs. Lower is safer — more room to handle vacancy without losing money. |
| Max Offer (MAO) | The highest price you can pay and still hit your target return, given your actual expenses and financing terms. |
Try it yourself, right here
Enter a property's numbers. Get the cash flow, the returns, a straight verdict, and the maximum offer that still hits your target return.
Ready to analyze