Active Mortgage · Planning tools
Does this rental property make sense?
Enter the price, expected rent, running costs and financing. You'll see net operating income, cap rate, cash flow and cash-on-cash return, plus a plain-language read of what the numbers suggest.
The property
Property type
Bedrooms
Income
Placeholder starting figure for a 3-bedroom in Halifax — not market data. Replace it with real comparable rents.
Running costs
Starts at 1% of the price per year. Use the actual tax bill if you have it.
Financing
Mortgage payment: $1,876 a month on $360,000, using semi-annual compounding.
Results
Cash flow at another payment frequency
| Gross yearly income | $27,600 |
| Less vacancy | -$1,380 |
| Effective income | $26,220 |
| Less running costs | -$9,288 |
| Net operating income | $16,932 |
| Less yearly mortgage payments | -$22,517 |
| Yearly cash flow before tax | -$5,585 |
What the numbers suggest
Relies on future changesWith these inputs, the deal depends on rising rents, price growth or lower future rates. Speak with our team before signing anything.
- Monthly cash flow is -$465 — you'd be topping up the property each month.
- The gross rent multiplier is 16.3x.
- Cash needed to close: about $96,750 (20% down plus an assumed 1.5% for closing costs).
A general guide only, based on what you entered. It isn't investment advice.
Team Active Mortgage
Investment property analysis
October 26, 2026
Your inputs
- Purchase price: $450,000
- City: Halifax
- Property type: single-family
- Beds / baths: 3 / 2
- Monthly rent: $2,300
- Vacancy: 5%
- Property tax: $375/mo
Reading the results
Net operating income is what the property earns after vacancy and running costs, before the mortgage. Cap rate compares that income with the price, so you can line up different properties without financing muddying the picture.
Cash flow and cash-on-cash return bring your mortgage into it. They show what's left each month and how hard your own money is working. Borrowing can lift or shrink these numbers depending on the rate you get.
Inputs worth checking twice
Rent is the input that matters most, so check it against real listings for similar units. Leave room for vacancy, repairs and management even if you plan to self-manage. Older buildings may need larger repair reserves. And test a higher interest rate to see how the deal holds up when your term renews.
How our brokers can help
Lenders treat rental income, down payments and multi-property portfolios differently. Our team can compare lenders and explain what's realistic for your file. Learn about our investor financing, try cash damming or rent vs buy, or start a pre-application.
Questions to consider
What does cap rate measure?
Cap rate is net operating income divided by the purchase price. Net operating income is rent and other income, less vacancy and operating costs, before any mortgage payment. Because it leaves financing out, it lets you compare properties on the same footing.
How is cash-on-cash return different?
Cash-on-cash looks at your own money. It divides the yearly cash flow after mortgage payments by the cash you put in — in this tool, the down payment plus an assumed 1.5% for closing costs.
What down payment does a rental need?
Requirements depend on the property, whether you'll live in part of it, and the lender. Our brokers can explain the options that apply to your situation.
Can rental income help me qualify?
Often, yes, but lenders count rental income in different ways, and the method can make a real difference. A broker can compare how different lenders would treat your file.
Should I include property management?
The tool starts at 8% of rent. If you'll manage the property yourself you can lower it, but consider the time involved and whether you'll want help later.
What is the 1% rule?
It's a quick screen that checks whether monthly rent is at least 1% of the purchase price. It's a rough rule of thumb, not a verdict, and many properties won't meet it.
Talk through your next step with our brokers
Your lender’s terms, household budget and goals matter alongside the numbers. Our team can help you review your mortgage options.