Fifty Percent Rule Estimate
Down Payment
Single Input Deal Analysis

Purchase Price

The agreed-upon price to acquire the property.

Example Result

Sample Data
$385,000

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Purchase Price Formula

User Input
User Input
$385,000

Where to Find This Value

Here's where you can find the value for Purchase Price:

Purchase Contract / HUD-1

The agreed-upon purchase price on your signed contract or closing statement

MLS Listing

The listing price from the Multiple Listing Service (may differ from final price)

Used to Calculate

Purchase Price is used as an input for these calculations:

Rent to Value Ratio
Income Metrics
0.74%
Gross Rent Multiplier
Income Metrics
11.26x
Yield on Cost
Return Metrics
5.13%
Operating Yield
Return Metrics
5.28%
Loan Amount
Debt Metrics
$308,000
Price Per Unit
Valuation Metrics
$385,000
Price Per Square Foot
Valuation Metrics
$256.67
Annual Depreciation
Tax Benefits
$11,200
Cost Basis
Tax Benefits
$396,550
All-In Cost Per Unit
Deal Analysis
$396,550
All-In Cost Per Square Foot
Deal Analysis
$264.37
Profit If Sold Today
Deal Analysis
-$42,350
One Percent Rule
Deal Analysis
0.74%
Two Percent Rule
Deal Analysis
0.74%
Down Payment
Deal Analysis
$77,000
Closing Costs
Deal Analysis
$11,550
Seller Concessions
Deal Analysis
$0

Platform Distribution

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Why It Matters

The purchase price determines your loan amount, down payment, closing costs, and every return metric. Overpaying even slightly can turn a good deal into a mediocre one. Always validate the asking price against comparable sales, income approach valuation, and your target return thresholds.

Detailed Explanation

Purchase Price is the total amount you agree to pay the seller for the property. It is the single most important input in any investment analysis because nearly every other metric — from loan amount to cap rate — derives from it. The purchase price should reflect the property's current market value, your negotiation leverage, and the expected returns at that price point.

Example

Sample Result
$385,000

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

Related Calculations

Total Cash to Close

U

Cash needed at the closing table to acquire the property.

$88,550 Example

Total Cash Invested

U

Total cash committed to the property: closing costs, rent-ready, reserves, and negative cash flow.

$111,163 Example

All-In Cost Per Unit

U

Total acquisition cost (including closing and rehab) per unit.

$396,550 Example

All-In Cost Per Square Foot

U

Total acquisition cost per square foot.

$264.37 Example

Rehab Cost Per Square Foot

2

Rent-ready/renovation costs divided by square footage.

$0.00 Example

ARV Estimate

1

After Repair Value — estimated property value after renovations.

N/A

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