Scenario analysis
Rental Property ROI on a $200,000 House
A practical example of how landlords evaluate ROI, cash flow, and expense assumptions on a $200,000 rental property.
Example scenario
Purchase price: $200,000. Monthly rent: $1,850. Taxes, insurance, vacancy, maintenance, management, and debt service all need to be considered before deciding whether the deal is healthy.
What to look for
At this price point, many investors want to know whether the monthly rent is high enough to support acceptable cash flow after financing. Cap rate and cash-on-cash return can help compare the opportunity against other deals in the same range.
Run your own numbers
Use the Rental ROI Calculator to test your own purchase price, expenses, and financing assumptions. You can also pressure-test the deal with the Cash Flow Stress Test.