Financing
Interest Rate
Annual mortgage rate. Investment-property rates run ~0.5-1% above primary-residence rates because lenders price the higher default risk.
Why Interest Rate matters
Interest rate has more impact on monthly cash flow than almost any other variable. A 1% rate change on a $300k loan = ~$170/mo of cash flow difference. Shop 3+ lenders on every deal — the spread between best and worst quote is usually 30-50bp.
Run the math on a real deal
TrueCap has a free calculator for this. Paste an address or enter numbers manually — get Interest Rate plus all the supporting metrics in 60 seconds.
Try the free Interest Rate calculatorRelated terms
Loan Term
Years over which the loan amortizes. 30-year fixed is the default; 15-year fixed reduces total inter…
DSCR (Debt Service Coverage Ratio)
Net Operating Income ÷ mortgage payment. Measures whether the property's income comfortably covers d…
Monthly Cash Flow
Rent minus operating expenses minus mortgage payment. The cash that lands in your account each month…