How to Use the Max Purchase Price Calculator
Most investors approach deals forwards: "I found a property at $300K — what are the returns?" This calculator works backwards. You tell it the return you want, and it tells you the maximum price you can pay.
This is powerful because it gives you a walk-away number before you ever make an offer. If the asking price is above your calculated max, you know you need to negotiate harder or move on. No spreadsheet gymnastics required.
What Cash-on-Cash Return Should I Target?
4-6% — Conservative
Typical for A-class properties in strong appreciation markets. You're trading cash flow for stability and long-term equity growth.
8-12% — Target Range
The sweet spot for most buy-and-hold investors. Solid cash flow with reasonable risk. This is where the majority of experienced investors aim.
15%+ — Aggressive
Achievable but usually requires value-add (BRRRR), creative financing, or C-class properties. Higher returns come with higher management burden.
Frequently Asked Questions
What expenses should I include?
Include property taxes, insurance, maintenance (typically 5% of rent), property management (8-10% of rent), HOA if applicable, and utilities if landlord-paid. The calculator adds the mortgage separately based on your loan terms.
How accurate is this calculator?
This gives you a reliable ballpark for negotiations. For a full analysis including deal scoring, cap rate, DSCR, IRR, and stress testing, use Proformatic's full deal analyzer.
Can I use this for BRRRR deals?
This calculator is designed for standard buy-and-hold rentals. For BRRRR deals, the math changes significantly because you refinance at the after-repair value. Use Proformatic's BRRRR analysis mode for that.