Break-Even Rent
The minimum rent needed for $0 monthly cashflow.
Solving the cashflow equation for rent = 0. If your target rent is close to break-even, any softening in the rental market puts you underwater. A healthy gap between target rent and break-even rent is your margin of safety.
Break-Even = (Insurance + Tax + Mortgage) / ((1 − Vacancy%) × (1 − OpEx%))
Displayed in the Returns Summary. Compare against your rent comp range.
Break-even at $1,810/mo vs target $1,650/mo = already underwater
If break-even rent exceeds your rent comp high, the deal does not work at any realistic rent.
Monthly Cash Flow
What you actually keep after all expenses and debt service.
Gross Monthly Rent
Total rent collected before any deductions or reserves.
Debt Service (Monthly Mortgage)
Monthly mortgage payment on the refinanced loan.
Refinance Loan-to-Value (Refi LTV)
How much of the property's value you borrow at refi — 75% pulls more cash, 70% has better cashflow.
Educational content only. Consult a CPA or attorney for advice specific to your situation.