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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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40-Year Projection Chart

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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)

Calculations That Use Purchase Price

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

Years Owned

U

Time elapsed since the property was purchased, calculated from the purchase date to today.

Profit If Sold

U

Net profit if sold today, based on actual years owned.

Return If Sold

U

Net sale profit as a percentage of initial cash invested, based on actual years owned.

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.

$110,830 Example

All-In Cost Per Unit

U

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

$396,550 Example

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