Section 8
Rent from HUD fair market rents for the county, with cash flow after the mortgage, taxes, insurance and HOA.
Learn about Section 8
Long-Term Rental
Buy and hold the house as a rental, with the rent, the loan and every expense worked out before you call the seller.
What It Is
In a long-term rental you buy the house, usually with a loan, and rent it out on a yearly lease. The rent has to cover the mortgage, taxes, insurance, HOA, vacancy, repairs, management and a reserve for big items like a roof. What is left is your cash flow, and over time the loan gets paid down while the house gains value.
How Propulator Handles It
- Paste a link or an addressThe analyzer fills in value, rent, taxes and HOA from market data, and tags anything it had to estimate.
- Check the rentThe long-term rental tab starts from the estimated market rent for the house. Change it if you know better.
- Set the loan and expensesPurchase price, closing costs and renovations, then loan to value, rate and amortization, vacancy, repairs, management, CapEx, taxes, insurance and HOA.
- Read the returnsMonthly and yearly cash flow, cash on cash and ROI for year 1 and year 5, with appreciation, debt paydown and any forced appreciation counted in.
Long-term rental
Inputs
Purchase price$168,000
Estimated rent$1,650
Vacancy5%
Repairs and maintenance5%
CapEx reserves3%
Loan to value80%
Interest rate6%
Results
Mortgage payment$806/mo
Cash flow$210/mo
Cash on cash, year 16.9%
Sample numbers for a demo property.
From Numbers to a Deal
Save the analysis as a property or start the deal in one click. The deal keeps the seller, your offer, the activity log and the documents together, and moves across your pipeline as it goes.
Check the same house as a Section 8 rental or a creative finance deal on the Compare tab before you decide.
Related Deal Types
Subject-To
Take over the seller's existing loan, with the cash to the seller, the payment and your fee worked out first.
Learn about Subject-ToAssignment
Lock up the house, assign the contract to a cash buyer and collect your fee, with the purchase and assignment templates on the deal.
Learn about Assignment