Canadian Money Guide

Rental property analyzer

Enter the listing. Missing expenses are replaced by lender norms (taxes from the assessment, insurance, maintenance, reserve, management), and the lender column caps undocumented rents at market. Calculations run in your browser; nothing is stored.

Verdict: Deal-breaker

Preliminary analysis
  • Cash flow Y1 
    −$3,441
    −$287/mo
    Deal-breaker
  • Cash to close 
    $116,812
    22% of price
    Information
  • DCR 
    0.86
    stress 0.71
    Information
  • 10-yr IRR 
    15.0%
    target 10%
    Meets target
  • Max price vs asking 
    $608,000
    +$83,000 vs asking
    Meets target
  • Cap rate 
    4.87%
    market 5.50%
    Deal-breaker

Verdict: Deal-breaker 

Preliminary analysis  : illustrative assumptions (to be confirmed) drive key outputs. Replace them with justified values (Assumptions tab).

  • cap_rate.plex (illustrative assumption) drives a key output
  • plan.accelerate_years (illustrative assumption) drives a key output
  • rate.conventional.5y (illustrative assumption) drives a key output
  • turnover.buyout_per_unit (illustrative assumption) drives a key output
  • turnover.renovation_per_unit (illustrative assumption) drives a key output

At this price, the building loses $3,441 in year 1 (−$287 a month) with Conventional, non-occupant (20% down).

NOI covers the payments 0.86 times (DCR); for 1 to 4 units the lender mostly qualifies on the borrower’s income.

For zero cash flow the price would need to be about $451,000, $74,000 under the asking price.

Maximum price for a 10% IRR on the optimization plan (relocation rents at tenant turnover, best financing, resale at the market cap rate of 5.5%): $608,000 ($83,000 above the asking price). Stabilized value, net of renovation: $602,000.

Checks (2) 

  • Expenses are 0.0% of effective income in the seller column: seller figures usually omit taxes, management and reserves. Check before trusting them.
  • Taxes municipales absentes ou à zéro dans les chiffres du vendeur : remplacées par la valeur au rôle × le taux dans les colonnes Prêteur et Investisseur.

Key figures (realistic projection) 

Average monthly cash flow, Y1 
−$287
Blocking

Year-1 cash flow ÷ 12; target $50 per unit.

Cash-on-cash 
−3.0%
Blocking

Year-1 cash flow ÷ equity invested.

Equity multiple 
3.84
Meets target

Everything returned ÷ equity invested.

Break-even occupancy 
104.9%
Blocking

(Expenses + debt service) ÷ gross potential income.

Expense ratio 
37.0%
Meets target

Expenses ÷ effective income; usually 35 to 50 %.

Lowest cumulative cash 
−$1,939
in 2029-05
Blocking

Lowest month-end balance (36 months).

Negative months 
10 months
Watch

Over the first 36 months.

Equity Y10 
$500,701
Info

Value less debt at the end of year 10.

Asking, maximum and zero-cash-flow price 

Asking price
$525,000
Maximum price (target IRR)
$608,000 (+$83,000)
Zero-cash-flow price
$451,000 (−$74,000)

Highest price meeting the target IRR on the optimization plan (relocation rents at tenant turnover, best financing, resale at the market cap rate) with DCR ≥ 1.00 when rates rise 2 points.

Stabilized value (NOI at relocation rents ÷ market cap rate, net of renovation): $602,000 .

From rent to cash flow, year 1 

Cash to close 

IllustrativeLiquidités de départ : 3 mois de service de la dette

10-year cash flow 

Other indicators

Net operating income (Lender) 
$24,976
Income value (NOI ÷ market cap rate) 
$454,106
Closing costs 
$11,361
Transfer tax $6,361 · Other closing costs $5,000

Engine 0.1.0, assumptions qc-sherbrooke-2026.09.28+boc-2026-10-14. Estimates based on assumptions; not financial advice or an appraisal.