Plug in your numbers and see cash flow, cap rate, and returns in real time. Built for remote investors underwriting Birmingham, AL deals.
A calculator gives you a number. Understanding that number tells you whether to proceed, negotiate, or walk away.
Cap rate measures the unlevered yield on a property — what it earns before debt service. It's the metric buyers use to compare deals across markets. In Birmingham, anything above 7% cap is generally competitive. The formula: annual NOI ÷ total acquisition cost.
Cash-on-cash is what you actually put in your pocket relative to what you put in the deal. It accounts for financing, so it's more relevant than cap rate for leveraged investors. Target 8–12% in Birmingham's investor-grade neighborhoods. Below 6% and you're not being compensated for the risk.
The number investors obsess over — but it's only meaningful relative to your total invested capital. A property generating $150/month is very different if you put in $20,000 vs. $80,000. Always read cash flow alongside cash-on-cash. If cash flow is positive but CoC is under 5%, the deal may be over-capitalized for the rent it produces.
The 8% vacancy and 1% maintenance assumptions are conservative and intentional. Birmingham's older housing stock runs hot on maintenance — 60-year-old galvanized plumbing, aging HVAC, deferred roof work. Underwriting at 0.5% maintenance is how investors end up underwater in year two. The defaults here are what a professional uses; adjust them down only when you have property-specific evidence to support it.
Net Operating Income divided by your total acquisition cost (purchase + rehab). Debt-free measure of asset yield. Use it to compare deals.
Annual cash flow divided by cash invested (down payment + rehab + closing costs). Your actual return on the dollars you deployed.
Rent minus mortgage, taxes, insurance, vacancy, and maintenance. Read alongside cash-on-cash, not in isolation.
Annual cash flow relative to total capital deployed including rehab. Broadest measure of deal efficiency.
Your calculator is only as good as your inputs. A $25K rehab estimate on a property you've never seen is a guess. A $49 drive-by inspection gives you exterior condition, occupancy status, and timestamped photos before you commit.
ROI benchmarks vary significantly by Birmingham submarket. These guides include ground-level inspection data, typical deal conditions, and neighborhood-specific risk factors.
ZIP 35228 · Highest wholesale activity · Widest condition variance · Strong long-term upside for buy-and-hold investors
ZIP 35215 · Suburban single-family · More predictable condition · Lower variance than inner-city submarkets
ZIP 35218 · Active revitalization zone · Highest cash-flow potential · Highest risk — inspect every deal before committing
