Cash-on-cash return calculator — Florida

Frequently asked questions

How do you calculate cash-on-cash return?

Cash-on-cash return is annual pre-tax cash flow divided by total upfront cash invested. This includes down payment, closing costs, rehab, and other initial costs.

What is a good cash-on-cash return for rental property?

Targets vary by market and risk profile. Many investors compare cash-on-cash return against financing risk, vacancy assumptions, and alternative uses of capital.

Can I save cash-on-cash calculator results?

This calculator does not save your session. Use a free Veld account to save deal assumptions, compare scenarios, and track portfolio performance over time.

Does this include hurricane or flood insurance?

No. Add expected insurance and reserves in your expense inputs. The calculator does not model hazard zones or carrier requirements for you.

What is a good cap rate in Florida?

Residential cap rates in Florida markets like Tampa, Orlando, and Jacksonville typically run 5–7% as of 2024–2025. South Florida and beach markets compress toward 4–5% due to appreciation expectations and higher prices. Wind and flood insurance costs reduce effective NOI—use your actual carrier quotes in the expenses line.

What DSCR do Florida lenders typically require?

Most DSCR lenders in Florida require a minimum of 1.0, with many preferring 1.20–1.25 for lower rates and better terms. Given Florida's higher insurance costs—especially in coastal counties—underwriting at 1.25 or above leaves room for insurance premium increases without failing coverage thresholds. Confirm requirements with your specific lender.

What drives cash-on-cash return most in Florida?

In Florida, cash-on-cash is most sensitive to your entry basis ($433,600 median home prices), interest rate, and true operating costs like 0.76% effective property tax. Stress test rent, vacancy, and maintenance before relying on one output.