Mortgage rates hit 7%+ in 2026. Here is what that actually does to a typical rental deal.
A $180K property renting for $1,400/month:
- Gross rent: $1,400
- Vacancy (7%): -$98
- Taxes: -$175
- Insurance: -$175
- Maintenance: -$112
- Management: -$140
- Mortgage (7%, 25% down): -$898
Cash flow: -$198/month
Most Instagram gurus skip vacancy, maintenance, CapEx, and management. Add those back and the deal is underwater.
The fix? Either find markets with rent-to-price ratios above 0.8% (Cleveland, Indianapolis, Augusta) or accept negative cash flow as the cost of appreciation.
Run your own numbers at arvcalc.com — free cash flow calculator with all expenses included.
Data: FRED, NAR, Census Bureau. 2026 figures.
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