Collected rent applies your vacancy allowance to gross rent. Operating expenses cover management, maintenance, property tax, insurance, and HOA — not the loan. Cash invested is the down payment plus closing costs; cash-on-cash divides yearly post-loan cash flow by it.

What data does it use?

Standard real-estate investment metrics (public domain).

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Rental Property ROI: how it works

Standard rental-property metrics: net operating income (collected rent minus operating expenses), cap rate (NOI ÷ price), monthly cash flow after the loan payment, and cash-on-cash return (yearly cash flow ÷ cash invested).

Step by step

Collected rent applies your vacancy allowance to gross rent.
Operating expenses cover management, maintenance, property tax, insurance, and HOA — not the loan.
Cash invested is the down payment plus closing costs; cash-on-cash divides yearly post-loan cash flow by it.

The math

Cap rate = NOI / price. Cash-on-cash = annual cash flow / cash invested. Monthly P&I via public-domain amortization.

Sources

Standard real-estate investment metrics (public domain).