How to Analyze Real Estate Deals
Analyze properties, estimate value ranges, and discover the fundamental ratios driving profitable deals: ROI, Cash Flow, and Cap Rate.
The Three Pillars of Property Analysis
Whether you're fixing and flipping or holding for rental income, master these three calculations first.
Cash Flow
Cash flow measures the net income generated by the property after deducting all operating expenses and mortgage payments.
- Covers operating costs
- Dictates monthly passive income
ROI (Return on Investment)
ROI illustrates the overall profitability of the deal compared to the capital invested. It factors the net profit divided by overall cost.
- Evaluates cash utilization
- Crucial for fix-and-flips
Cap Rate
The capitalization rate represents the estimated percentage return looking purely at the Net Operating Income (NOI).
- Normalizes risk assessments
- Compares markets seamlessly
Stop doing the math manually.
InvestorVI automatically computes your ROI, rehab costs, and required offer prices in seconds so you can execute deals instantly.
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