Strategy
Buy-to-rent
Buy a property, lease it long term and hold it. The question is simple: after every real cost, does the rent carry the property with room to spare?
What it is
A buy-to-rent investor earns from monthly rent and, over time, from any change in the property’s value and the loan being paid down. The rent has to cover taxes, insurance, maintenance, management, association dues and the mortgage, in good months and bad.
In South Florida the expenses side moves faster than in most markets. Insurance, association dues and property tax after a sale can each change a deal’s cash flow by more than a small change in rent. The analyzer puts those costs in front of you before it shows any return.
Key metrics, in plain English
These are the definitions the analyzer uses. Every input is visible and editable, and each is marked as a verified record, an estimate or your assumption.
- Gross rent
Monthly rent × 12.
Starts from a HUD Fair Market Rent benchmark for the ZIP and bedroom count (an estimate) or your own figure.
- Net operating income (NOI)
Gross rent, minus vacancy, minus operating expenses: property tax, insurance, maintenance and capital reserve, management and HOA or condo dues.
NOI excludes the mortgage, so it describes the property, not the financing.
- Cap rate
NOI ÷ purchase price.
Also shown on the all-in cost, including closing and initial repairs.
- Cash flow
NOI − annual mortgage payments (principal and interest).
Shown per year and per month. Negative cash flow is shown as negative, never rounded away.
- Cash-on-cash return
Annual cash flow ÷ total cash invested (down payment, closing costs and initial repairs).
- DSCR
NOI ÷ annual mortgage payments.
Debt service coverage ratio. Many lenders look for 1.20 or more on investment loans; below 1.00 the rent does not cover the loan.
- Break-even occupancy
(Operating expenses + mortgage payments) ÷ gross rent.
The share of the year the property must be rented just to cover its costs.
South Florida risks to price in
Local factors that can turn a workable deal into a losing one. Confirm each with a licensed professional.
Wind and flood insurance
Premiums in South Florida have risen sharply and vary widely by roof age, wind-mitigation features and flood zone. Flood cover is usually a separate policy. Get a quote before you commit, and stress-test a 25–50% increase.
Condominiums and HOAs
Recent Florida condominium safety legislation requires milestone structural inspections for many older buildings and funded reserves for key structural components. That can mean higher dues or large special assessments. Ask for the inspection and reserve study status, and check rental restrictions.
Property tax after purchase
Homestead and non-homestead assessment caps generally reset when a property sells. The seller’s tax bill is not your tax bill. The analyzer estimates tax from just value and the local millage rate, and shows that assumption.
Hurricane season
From June 1 to November 30, insurers may pause new policies when a storm threatens, which can delay a closing. Budget for storm preparation, deductibles and possible vacancy after damage.
Run a rental on a real parcel.
Pick a property, start from its official record and a sourced rent benchmark, then adjust every assumption and stress test.