๐ฏ Maximum Offer Price Calculator
Discover the maximum you can pay while hitting your investment goals
Investment Goals
Maximize Cash-on-Cash Return
Best for: Building long-term wealth through returns
Target CoC Return (%)
๐ Cash-on-Cash Return Strategy
This strategy maximizes your percentage return on invested capital. CoC = Annual Cash Flow รท Total Cash Invested (down payment + closing costs). Great for investors focused on efficiency of capital.
Result: You'll get the highest return percentage, but may have lower monthly cash flow. Best if you're reinvesting profits or comparing multiple investment options.
Example: 12% CoC on $50K invested = $6,000/year ($500/month) profit
Maximize Monthly Cash Flow
Best for: Maximizing monthly income you pocket
Target Monthly Cash Flow ($)
๐ต Cash Flow Strategy
This strategy maximizes dollars in your pocket each month. Calculates the highest price you can pay while still hitting your target monthly profit after ALL expenses (mortgage, taxes, insurance, maintenance, vacancy).
Result: You get consistent monthly income, but CoC return may be lower. Best for investors who want to cover bills, quit their job, or live off rental income.
Example: $300/month target = $3,600/year passive income guaranteed
Meet Lender DSCR Requirements
Best for: Ensuring loan approval with strong DSCR
Minimum DSCR Ratio
๐ฆ DSCR Strategy
This strategy ensures you meet lender requirements. DSCR = Net Operating Income รท Debt Service. Most lenders require 1.20-1.25 minimum. This is the "safe" strategy for traditional financing.
Result: You'll qualify for financing, but might sacrifice some cash flow or returns. Best for investors who need bank loans and want to avoid portfolio lenders.
Example: 1.25 DSCR means property generates $1.25 for every $1 of mortgage payment
Property Details
Market rent you expect to collect
๐ Expected Monthly Rent
Research comparable rentals (same beds/baths/sqft/condition) on Zillow, Rentometer, or ask property managers. Don't guessโactual comps matter!
Impact: Higher rent = Higher max offer. Every extra $100/month in rent lets you pay ~$15,000-$20,000 more.
Example: 3bd/2ba comps rent for $1,400-$1,600 โ Use $1,500
Taxes, insurance, maintenance, PM (typical: 45-55%)
๐ง Operating Expenses
All non-mortgage costs: property taxes, insurance, maintenance, repairs, property management (8-10%), utilities (if you pay), HOA, landscaping, turnover costs. "50% Rule" = 45-55% typical.
Impact: Higher % = Lower max offer. 60% OpEx vs 40% dramatically reduces max offer. Older properties: 55-60%, Newer: 40-50%.
Example: $1,500 rent ร 50% = $750/month in expenses
Expected vacancy time per year
๐
Vacancy Rate
% of time property sits empty per year. Includes turnover, screening, repairs between tenants. National average: 5-8% (2-4 weeks/year).
Impact: Higher vacancy = Lower max offer. 10% vs 5% = losing extra month of rent/year.
Example: 5% vacancy on $1,500/mo = $900/year lost
Financing Terms
Typical: 20-25% for investment property
๐ฐ Down Payment
Cash you put down at purchase. Investment properties require 20-25% (vs 3-5% owner-occupied). More down = lower monthly payment but more cash needed.
Impact: Counter-intuitively, LOWER down can increase max offer! Lower down = smaller monthly payment = more cash flow. But 20% often outperforms 25%.
Example: $200K ร 25% = $50K down + closing costs
Current market rate for investment loans
๐ Interest Rate
Annual % to borrow money. Investment rates typically 0.5-1% higher than owner-occupied. Varies by credit score, loan type, market conditions.
Impact: HUGE! Higher rate = much lower max offer. 6% to 8% can drop max offer $20K-$30K. Every 0.5% matters!
Example: $150K at 7% = $998/mo | 8% = $1,101/mo (+$103)
Standard: 15 or 30 years
โฑ๏ธ Loan Term
Payoff timeline. 30yr = lower payment, 15yr = higher payment but less interest. Most investors use 30yr to maximize cash flow.
Impact: Longer term = Higher max offer. 30yr gives lower monthly payment than 15yr, leaving more cash flow.
Example: $150K at 7%: 30yr = $998/mo | 15yr = $1,348/mo
Typical: 2-4% of purchase price
๐ผ Closing Costs
All fees to complete purchase: origination, appraisal, title insurance, attorney, inspection, recording, escrow, prepaid taxes/insurance. OUT OF POCKET costs on top of down payment.
Impact: Higher costs = Lower max offer. These increase total cash invested, affecting CoC. 4% vs 2% can reduce max offer $5K-$10K.
Example: $200K ร 3% = $6K closing (+ $50K down = $56K total)
๐ Your Maximum Allowable Offer
Maximum Price You Can Pay
$0
Strategy: Maximize Cash Flow
๐ต Monthly Cash Flow
$0
๐ CoC Return
0%
๐ฆ DSCR
0.00
๐ก Your Negotiation Strategy
Based on your maximum offer of $0, here's how to structure your negotiations:
๐ฏ Initial Offer
$0
10% below max - room to negotiate
โก Strong Offer
$0
5% below max - competitive markets
๐ซ Walk-Away Price
$0
Your calculated maximum
๐ Strategy Comparison
| Strategy | Max Offer | Monthly Cash Flow | CoC Return | DSCR | Qualifies? |
|---|
๐ก Insights
โ ๏ธ No Qualifying Offer Found
Based on your criteria and property details, it's not possible to make an offer that meets your selected goal.
Consider adjusting:
- Lower your target return/cash flow expectations
- Increase your down payment to reduce monthly payments
- Look for properties with higher rent or lower expenses
- Try a different investment strategy (click "Compare All 3")