Ultimate Guide 12 min read Updated 2026-02-01

Rental Property Investment Guide 2026

Invest in rental real estate. Costs, returns, and management considerations.

Investment Analysis

Key metrics:
  • Cap rate: (NOI / Property value) × 100
  • Target: 5-10% depending on market
  • Cash-on-cash return: Annual cash flow / Total cash invested
  • Target: 8-12%
1% Rule: Monthly rent should be ~1% of purchase price

Landlord Costs

Expense% of Rent
Vacancy5-10%
Repairs/maintenance5-10%
Property management8-10%
Insurance5-8%
Property taxesVaries
Cash flow: Rent - Mortgage - Expenses

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