How is the mortgage payment calculated?
We assume 20% down, a 30-year fixed mortgage at the current rate shown on the page, with P&I calculated using the standard amortization formula. Tax is pulled directly from MLS data or estimated at Austin's ~1.75% effective rate when MLS data is unavailable. Insurance is estimated at $1,000 per year ($83/mo). HOA dues are normalized to monthly from whatever frequency the MLS reports.
What does "cash flowing" mean on this page?
A property is flagged as cash-flowing when the highest nearby closed lease price within a 1-mile radius (from the last 180 days) exceeds the estimated monthly PITI payment. This is a simplified screen, actual cash flow depends on vacancy, maintenance, management fees, and other factors not shown here.
How current is the rental data?
Lease comp data comes directly from the MLS and covers closed leases from the past 180 days. The algorithm runs fresh every 30 minutes and only compares the subject property against leases within 1 mile with a similar bedroom count (±1 bedroom). Results are cached for 30 minutes to keep page load fast.
What about vacancy and expenses?
This tool only calculates gross cash flow (rent minus PITI). It does not account for vacancy (typically 5 to 10%), property management (8 to 12%), maintenance reserves (1 to 2% of value/yr), or capital expenditures. Always underwrite with those costs before making an investment decision. A property showing +$400/mo here may not cash flow after adding those expenses.
What's included in the PITI estimate?
P, Principal & Interest at 80% LTV (20% down), 30-year fixed
I, Property taxes from MLS, or ~1.75%/yr of purchase price when unavailable
T, Insurance estimated at $1,000/yr ($83/mo)
I, HOA dues normalized to monthly (annual ÷ 12, quarterly ÷ 3)
The mortgage rate displayed at the top is the exact rate used in all calculations.
Is this a guarantee of rental income?
No. This data is estimated from MLS lease comps and is provided for informational purposes only. Actual rental income depends on market conditions, property condition, vacancy, tenant quality, and many other factors. This is not financial or investment advice. Consult a licensed financial advisor before making investment decisions.
Luke Allen, TREC #788149, is a licensed real estate agent, not a financial advisor. Past rental comps do not guarantee future rental income.