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Real Estate Investing, Explained

New to rental-property investing — or just tired of guessing? This guide breaks down the numbers that decide whether a deal makes money: cap rate, cash-on-cash return, DSCR, NOI, ARV, the 1% rule and more — in plain English. CashFlowRE computes all of them on every for-sale listing so you can find cash-flowing properties fast.

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In-depth guides

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Key metrics & abbreviations

Cap rate

Cap rate (capitalization rate) = a property's yearly net operating income ÷ its price, as a %. It's the unleveraged annual return if you paid all cash…

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Cash-on-cash return (CoC)

Cash-on-cash (CoC) = annual pre-tax cash flow ÷ the actual cash you put in (down payment + closing + rehab). Unlike cap rate it accounts for your mort…

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DSCR

DSCR (Debt Service Coverage Ratio) = net operating income ÷ annual mortgage payments. 1.0 means rent exactly covers the loan; lenders usually want 1.2…

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NOI

NOI (Net Operating Income) = gross rent minus operating expenses (taxes, insurance, maintenance, vacancy, management) — but BEFORE the mortgage. It's …

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ARV

ARV (After Repair Value) = the estimated market value of the property once it's fully renovated, based on comparable sold homes. We compare list price…

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The 1% rule

The 1% rule is a quick screen: monthly rent ÷ purchase price. If that's ≥ 1% (e.g. $2,000 rent on a $200,000 home), the deal is likely to cash flow. I…

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Composite score

The composite score (0–100) is our overall ranking that blends the investment math (cap rate, cash-on-cash, DSCR, 1% rule) with location quality (liva…

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Letter grade (A–F)

The A–F grade is a simple bucket of the composite score: A = top deals, F = weakest. Use it as a quick filter; open a property for the full breakdown …

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Neighborhood tier

Neighborhood tier rates the area's quality (A+ to C) from the livability score, so you can filter for stronger locations regardless of the individual …

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Livability score

Livability (0–100) is a location-quality score for the city/area, covering amenities, cost of living, crime, education, employment, housing, and weath…

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Schools composite / school grade

The schools composite/grade rates the assigned school district's quality. Good schools tend to support property values and attract long-term tenants/b…

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Crime grade

The crime grade (A–F) reflects the area's crime level relative to national averages — A is safest. It's part of the livability picture.

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HPI / price trend (YoY)

HPI (Home Price Index) tracks how home prices in the area have moved. The YoY figure is the year-over-year % change — positive means prices are rising…

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Days on market (DOM)

Days on market (DOM) = how long the listing has been for sale. We show a live count (scrape date + days since). A high DOM can signal an overpriced li…

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Monthly / annual cash flow

Cash flow = rent left over after ALL costs including the mortgage (mortgage + taxes + insurance + vacancy + maintenance + management). Monthly cash fl…

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Estimated rent

Estimated monthly rent comes from our rental-market model using comparable local rentals (and per-unit rents for multi-family). It drives all the cash…

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Fractional / co-ownership share

Some listings are a fractional (co-ownership) share, not the whole home — so the list price is for a fraction. We gross it up to the implied whole-pro…

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Hot home

A 'Hot' badge marks listings flagged as getting high buyer interest, so they may move fast. It's a demand signal, not a value judgment.

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Waterfront / Lakefront

Waterfront filters find homes near a body of water (lake, pond, river, reservoir, bay, ocean) using Census water-boundary data, and you can filter by …

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Price per sqft

Price per square foot = price ÷ living area. It's a quick way to compare a listing's pricing against nearby homes of different sizes.

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Underwriting assumptions

Our cash-flow math uses default investor assumptions: 25% down, ~7.5% rate, 30-yr loan, plus allowances for taxes, insurance, vacancy (8%), maintenanc…

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Comps / CMA

Comps (comparables) are recently sold, similar nearby homes. The CMA (Comparative Market Analysis) uses them to estimate ARV/value, which we compare t…

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HOA

HOA = Homeowners Association fee, a recurring charge in some communities (condos, planned developments). It's an operating cost that reduces cash flow…

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Frequently asked questions

What is CashFlowRE?

CashFlowRE ranks for-sale homes by their investment potential — it pulls listings, estimates rent, runs the cash-flow math, and scores each property on returns + location quality so you can quickly find cash-flowing deals. Use the filters and sort to narrow down, and open a property for the full breakdown.

Where does the data come from / how fresh?

Listings and details are scraped from public real-estate sources and refreshed on a recurring schedule (roughly every few hours). Rent, scores, and comps are computed from market data. Figures are estimates to help you screen — always verify the specifics before making an offer.

What's a good cap rate / cash-on-cash?

Rules of thumb (markets vary!): cap rate 7%+ and cash-on-cash 8%+ are generally attractive for cash flow; DSCR 1.2+ keeps lenders happy. Pricey/appreciating markets often trade at lower cap rates because buyers expect price growth instead.

How do I save searches / favorite homes?

Sign in, then use the heart icon on a card to favorite a property (see them under your account menu → Favorites), and save a filter set as a saved search from the filters area. You can also hide listings you're not interested in.

Why are some photos missing?

Photos are added by a background job that works through new listings newest-first, so a very recently added property may not have its images yet — they usually appear within a day or two. Some listings also genuinely have no photos at the source.

Subscription & billing

Plans: a 1-Day pass ($2), a 7-Day pass ($10), and a Monthly plan ($30, auto-renews). Manage or cancel anytime from the Subscription page (account menu → Subscription → Manage subscription). Payments are handled securely by Stripe.

Explain the metrics / abbreviations

Ask me about any of these and I'll break it down simply: cap rate, cash-on-cash (CoC), DSCR, NOI, ARV, the 1% rule, composite score, grade, livability, schools, crime grade, HPI/price trend, days on market, cash flow, estimated rent, fractional shares, price per sqft, comps/CMA, HOA, and the underwriting assumptions. Just type the term.

Ready to put the numbers to work? Create a free account and start screening deals.