The following shows the number of active properties for sale in Loveland grouped by Capitalization Rate. Capitalization Rate (also known as Cap Rate) is the return you'd expect to earn on the property if you purchased the property for cash and rented it out.

I am able to provide this data because I analyzed every new property for sale and every price changed property in the MLS priced below $350,000 for Capitalization Rate, Cash On Cash Return and Internal Rate of Return.

Capitalization Rate Number Active Properties Average Cap Rate For Range
> 25% 2 31.95%
20% to 25% 0 N/A
15% to 20% 0 N/A
14% to 15% 0 N/A
13% to 14% 0 N/A
12% to 13% 0 N/A
11% to 12% 0 N/A
10% to 11% 0 N/A
9% to 10% 0 N/A
8% to 9% 1 8.49%
7% to 8% 1 7.57%
6% to 7% 0 N/A
5% to 6% 1 5.56%
4% to 5% 4 4.33%
3% to 4% 23 3.44%
2% to 3% 17 2.61%
1% to 2% 5 1.88%
0% to 1% 0 N/A
Less Than Or Equal To 0% 1 - 0.53%

Capitalization Rate Calculation Example

The following is an excerpt from a calculation I do for investor clients on all newly listed and new price change properties for sale. It walks you through--on a single property--how I calculate the Capitalization Rate that I use to create the tables above.

429 W 12th St As An Investment

In the table below I'll be running some numbers on how 429 W 12th St might be as an investment. If you're planning to buy this to live in, this information will largely be worthless to you. If you're a real estate investor, it may prove to be invaluable.

Description Amount
Base Rent per Bedroom per Month $300 - $400
# Bedrooms × 2 = $800
Subdivision Rent Premium () + 0% = $800
Home Age Rent Premium (built in 1945) + 0% = $800
Home Price Rent Premium (asking $197,500) + 5% = $840
Garage Rent Premium (1 garage spaces) + 4% = $872
Square Foot Rent Premium (832 square feet) + 0% = $872
Adjusted Base Rent $872
Vacancy Rate at 5% - $44 = $828
Property Management at 10% - $80 = $748
Property Taxes at $724/year - $60 = $688
Hazard Insurance (estimated based on price alone) - $82 = $606
HOA at $0 - $0 = $606
Owner Utilities ($150/vacancy) - $8 = $598
Maintenance Reserve at 12% (based on property age) - $96 = $502
Net Operating Income (NOI) $502

Let's now look at the Net Operating Income (NOI) for 429 W 12th St at $502 per month and see if it can support purchasing this property at some of the more common down payments for real estate investors.

Capitalization Rate for 429 W 12th St

If you take the Net Operating Income that I've calculated as a monthly figure, convert it to a yearly amount by multiplying by 12 and divide it by the purchase price you can determine the Cap Rate or the Capitalization Rate for 429 W 12th St. It turns out be 3.05%.

Will A 20% Down Payment Buying 429 W 12th St As A Real Estate Investor Give Me Positive Cash Flow?

If you put 20% down and purchased 429 W 12th St, would the Net Operating Income be enough to cover the mortgage payment?

Well, the interest rate we've been discussing for owner occupied properties is 3.375% but for an investor loan where the owner will not be occupying there is often a small premium on the interest rate so I will use an interest rate of 3.875% for those calculations.

Negative Cash Flow

With 20% down payment, you'd be borrowing $158,000 at 3.875% for 360 months. That would give you payments of $742.97 per month. That's a deferred down payment (my nice way of saying negative cash flow) of about $241 per month.

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Loveland

4%
Level 2Unread 1 Bedroom Loveland Homes $500 to $600 Per Month Unread 1 Bedroom Loveland Homes $600 to $700 Per Month Unread 1 Bedroom Loveland Homes $700 to $800 Per Month Unread 1 Bedroom Loveland Homes $800 to $900 Per Month Unread 1 Bedroom Loveland Homes $900 to $1,000 Per Month Unread 1 Bedroom Loveland HUD Homes $0 to $600 Per Month Unread 1 Bedroom Loveland HUD Homes $1,000 to $1,100 Per Month Unread 1 Bedroom Loveland HUD Homes $1,100 to $1,200 Per Month Unread 1 Bedroom Loveland HUD Homes $1,200 to $1,300 Per Month Unread 1 Bedroom Loveland HUD Homes $1,300 to $1,400 Per Month Unread 1 Bedroom Loveland HUD Homes $1,400 to $1,500 Per Month Unread 1 Bedroom Loveland HUD Homes $1,500 to $1,600 Per Month Unread 1 Bedroom Loveland HUD Homes $1,600 to $1,700 Per Month Unread 1 Bedroom Loveland HUD Homes $1,700 to $1,800 Per Month Unread 1 Bedroom Loveland HUD Homes $1,800 to $1,900 Per Month Unread 1 Bedroom Loveland HUD Homes $1,900 to $2,000 Per Month Unread 1 Bedroom Loveland HUD Homes $600 to $700 Per Month Unread 1 Bedroom Loveland HUD Homes $700 to $800 Per Month Unread 1 Bedroom Loveland HUD Homes $800 to $900 Per Month Unread 1 Bedroom Loveland HUD Homes $900 to $1,000 Per Month Unread 1 Bedroom Loveland REO Homes $0 to $600 Per Month Unread 1 Bedroom Loveland REO Homes $1,000 to $1,100 Per Month Unread 1 Bedroom Loveland REO Homes $1,100 to $1,200 Per Month Unread 1 Bedroom Loveland REO Homes $1,200 to $1,300 Per Month Unread 1 Bedroom Loveland REO Homes $1,300 to $1,400 Per Month
Level 3Unread 1 Bedroom Loveland REO Homes $1,400 to $1,500 Per Month Unread 1 Bedroom Loveland REO Homes $1,500 to $1,600 Per Month Unread 1 Bedroom Loveland REO Homes $1,600 to $1,700 Per Month Unread 1 Bedroom Loveland REO Homes $1,700 to $1,800 Per Month Unread 1 Bedroom Loveland REO Homes $1,800 to $1,900 Per Month Unread 1 Bedroom Loveland REO Homes $1,900 to $2,000 Per Month Unread 1 Bedroom Loveland REO Homes $600 to $700 Per Month Unread 1 Bedroom Loveland REO Homes $700 to $800 Per Month Unread 1 Bedroom Loveland REO Homes $800 to $900 Per Month Unread 1 Bedroom Loveland REO Homes $900 to $1,000 Per Month Unread 2 Bedroom Loveland Homes $0 to $600 Per Month Unread 2 Bedroom Loveland Homes $1,000 to $1,100 Per Month Unread 2 Bedroom Loveland Homes $1,100 to $1,200 Per Month Unread 2 Bedroom Loveland Homes $1,200 to $1,300 Per Month Unread 2 Bedroom Loveland Homes $1,300 to $1,400 Per Month Unread 2 Bedroom Loveland Homes $1,400 to $1,500 Per Month Unread 2 Bedroom Loveland Homes $1,500 to $1,600 Per Month Unread 2 Bedroom Loveland Homes $1,600 to $1,700 Per Month Unread 2 Bedroom Loveland Homes $1,700 to $1,800 Per Month Unread 2 Bedroom Loveland Homes $1,800 to $1,900 Per Month Unread 2 Bedroom Loveland Homes $1,800 to $1,900 Per Month Unread 2 Bedroom Loveland Homes $1,900 to $2,000 Per Month Unread 2 Bedroom Loveland Homes $2,000 to $2,100 Per Month Unread 2 Bedroom Loveland Homes $2,100 to $2,200 Per Month Unread 2 Bedroom Loveland Homes $2,200 to $2,300 Per Month
Level 4Unread 2 Bedroom Loveland Homes $2,300 to $2,400 Per Month Unread 2 Bedroom Loveland Homes $2,300 to $2,400 Per Month Unread 2 Bedroom Loveland Homes $2,400 to $2,500 Per Month Unread 2 Bedroom Loveland Homes $2,400 to $2,500 Per Month Unread 2 Bedroom Loveland Homes $2,500 to $2,600 Per Month Unread 2 Bedroom Loveland Homes $2,600 to $2,700 Per Month Unread 2 Bedroom Loveland Homes $2,700 to $2,800 Per Month Unread 2 Bedroom Loveland Homes $2,800 to $2,900 Per Month Unread 2 Bedroom Loveland Homes $500 to $600 Per Month Unread 2 Bedroom Loveland Homes $600 to $700 Per Month Unread 2 Bedroom Loveland Homes $700 to $800 Per Month Unread 2 Bedroom Loveland Homes $800 to $900 Per Month Unread 2 Bedroom Loveland Homes $900 to $1,000 Per Month Unread 2 Bedroom Loveland HUD Homes $0 to $600 Per Month Unread 2 Bedroom Loveland HUD Homes $1,000 to $1,100 Per Month Unread 2 Bedroom Loveland HUD Homes $1,100 to $1,200 Per Month Unread 2 Bedroom Loveland HUD Homes $1,200 to $1,300 Per Month Unread 2 Bedroom Loveland HUD Homes $1,300 to $1,400 Per Month Unread 2 Bedroom Loveland HUD Homes $1,400 to $1,500 Per Month Unread 2 Bedroom Loveland HUD Homes $1,500 to $1,600 Per Month Unread 2 Bedroom Loveland HUD Homes $1,600 to $1,700 Per Month Unread 2 Bedroom Loveland HUD Homes $1,700 to $1,800 Per Month Unread 2 Bedroom Loveland HUD Homes $1,800 to $1,900 Per Month Unread 2 Bedroom Loveland HUD Homes $1,900 to $2,000 Per Month Unread 2 Bedroom Loveland HUD Homes $600 to $700 Per Month
Level 5Unread 2 Bedroom Loveland HUD Homes $700 to $800 Per Month Unread 2 Bedroom Loveland HUD Homes $800 to $900 Per Month Unread 2 Bedroom Loveland HUD Homes $900 to $1,000 Per Month Unread 2 Bedroom Loveland REO Homes $0 to $600 Per Month Unread 2 Bedroom Loveland REO Homes $1,000 to $1,100 Per Month Unread 2 Bedroom Loveland REO Homes $1,100 to $1,200 Per Month Unread 2 Bedroom Loveland REO Homes $1,200 to $1,300 Per Month Unread 2 Bedroom Loveland REO Homes $1,300 to $1,400 Per Month Unread 2 Bedroom Loveland REO Homes $1,400 to $1,500 Per Month Unread 2 Bedroom Loveland REO Homes $1,500 to $1,600 Per Month Unread 2 Bedroom Loveland REO Homes $1,600 to $1,700 Per Month Unread 2 Bedroom Loveland REO Homes $1,700 to $1,800 Per Month Unread 2 Bedroom Loveland REO Homes $1,800 to $1,900 Per Month Unread 2 Bedroom Loveland REO Homes $1,900 to $2,000 Per Month Unread 2 Bedroom Loveland REO Homes $600 to $700 Per Month Unread 2 Bedroom Loveland REO Homes $700 to $800 Per Month Unread 2 Bedroom Loveland REO Homes $800 to $900 Per Month Unread 2 Bedroom Loveland REO Homes $900 to $1,000 Per Month Unread 3 Bedroom Loveland Homes $0 to $600 Per Month Unread 3 Bedroom Loveland Homes $1,000 to $1,100 Per Month Unread 3 Bedroom Loveland Homes $1,050 to $1,200 Per Month Unread 3 Bedroom Loveland Homes $1,200 to $1,300 Per Month Unread 3 Bedroom Loveland Homes $1,300 to $1,400 Per Month Unread 3 Bedroom Loveland Homes $1,400 to $1,500 Per Month Unread 3 Bedroom Loveland Homes $1,500 to $1,600 Per Month
Level 7Unread 3 Bedroom Loveland HUD Homes $1,600 to $1,700 Per Month Unread 3 Bedroom Loveland HUD Homes $1,700 to $1,800 Per Month Unread 3 Bedroom Loveland HUD Homes $1,800 to $1,900 Per Month Unread 3 Bedroom Loveland HUD Homes $1,900 to $2,000 Per Month Unread 3 Bedroom Loveland HUD Homes $600 to $700 Per Month Unread 3 Bedroom Loveland HUD Homes $700 to $800 Per Month Unread 3 Bedroom Loveland HUD Homes $800 to $900 Per Month Unread 3 Bedroom Loveland HUD Homes $900 to $1,000 Per Month Unread 3 Bedroom Loveland REO Homes $0 to $600 Per Month Unread 3 Bedroom Loveland REO Homes $1,000 to $1,100 Per Month Unread 3 Bedroom Loveland REO Homes $1,100 to $1,200 Per Month Unread 3 Bedroom Loveland REO Homes $1,200 to $1,300 Per Month Unread 3 Bedroom Loveland REO Homes $1,300 to $1,400 Per Month Unread 3 Bedroom Loveland REO Homes $1,400 to $1,500 Per Month Unread 3 Bedroom Loveland REO Homes $1,500 to $1,600 Per Month Unread 3 Bedroom Loveland REO Homes $1,600 to $1,700 Per Month Unread 3 Bedroom Loveland REO Homes $1,700 to $1,800 Per Month Unread 3 Bedroom Loveland REO Homes $1,800 to $1,900 Per Month Unread 3 Bedroom Loveland REO Homes $1,900 to $2,000 Per Month Unread 3 Bedroom Loveland REO Homes $600 to $700 Per Month Unread 3 Bedroom Loveland REO Homes $700 to $800 Per Month Unread 3 Bedroom Loveland REO Homes $800 to $900 Per Month Unread 3 Bedroom Loveland REO Homes $900 to $1,000 Per Month Unread 4 Bedroom Loveland Homes $0 to $600 Per Month Unread 4 Bedroom Loveland Homes $1,000 to $1,100 Per Month
Level 9Unread 4 Bedroom Loveland HUD Homes $1,000 to $1,100 Per Month Unread 4 Bedroom Loveland HUD Homes $1,100 to $1,200 Per Month Unread 4 Bedroom Loveland HUD Homes $1,200 to $1,300 Per Month Unread 4 Bedroom Loveland HUD Homes $1,300 to $1,400 Per Month Unread 4 Bedroom Loveland HUD Homes $1,400 to $1,500 Per Month Unread 4 Bedroom Loveland HUD Homes $1,500 to $1,600 Per Month Unread 4 Bedroom Loveland HUD Homes $1,600 to $1,700 Per Month Unread 4 Bedroom Loveland HUD Homes $1,700 to $1,800 Per Month Unread 4 Bedroom Loveland HUD Homes $1,800 to $1,900 Per Month Unread 4 Bedroom Loveland HUD Homes $1,900 to $2,000 Per Month Unread 4 Bedroom Loveland HUD Homes $600 to $700 Per Month Unread 4 Bedroom Loveland HUD Homes $700 to $800 Per Month Unread 4 Bedroom Loveland HUD Homes $800 to $900 Per Month Unread 4 Bedroom Loveland HUD Homes $900 to $1,000 Per Month Unread 4 Bedroom Loveland REO Homes $0 to $600 Per Month Unread 4 Bedroom Loveland REO Homes $1,000 to $1,100 Per Month Unread 4 Bedroom Loveland REO Homes $1,100 to $1,200 Per Month Unread 4 Bedroom Loveland REO Homes $1,200 to $1,300 Per Month Unread 4 Bedroom Loveland REO Homes $1,300 to $1,400 Per Month Unread 4 Bedroom Loveland REO Homes $1,400 to $1,500 Per Month Unread 4 Bedroom Loveland REO Homes $1,500 to $1,600 Per Month Unread 4 Bedroom Loveland REO Homes $1,600 to $1,700 Per Month Unread 4 Bedroom Loveland REO Homes $1,700 to $1,800 Per Month Unread 4 Bedroom Loveland REO Homes $1,800 to $1,900 Per Month Unread 4 Bedroom Loveland REO Homes $1,900 to $2,000 Per Month
Level 11Unread 5 Bedroom Loveland Homes $2,500 to $2,600 Per Month Unread 5 Bedroom Loveland Homes $2,600 to $2,700 Per Month Unread 5 Bedroom Loveland Homes $2,700 to $2,800 Per Month Unread 5 Bedroom Loveland Homes $2,800 to $2,900 Per Month Unread 5 Bedroom Loveland Homes $500 to $600 Per Month Unread 5 Bedroom Loveland Homes $600 to $700 Per Month Unread 5 Bedroom Loveland Homes $700 to $800 Per Month Unread 5 Bedroom Loveland Homes $800 to $900 Per Month Unread 5 Bedroom Loveland Homes $900 to $1,000 Per Month Unread 5 Bedroom Loveland HUD Homes $0 to $600 Per Month Unread 5 Bedroom Loveland HUD Homes $1,000 to $1,100 Per Month Unread 5 Bedroom Loveland HUD Homes $1,100 to $1,200 Per Month Unread 5 Bedroom Loveland HUD Homes $1,200 to $1,300 Per Month Unread 5 Bedroom Loveland HUD Homes $1,300 to $1,400 Per Month Unread 5 Bedroom Loveland HUD Homes $1,400 to $1,500 Per Month Unread 5 Bedroom Loveland HUD Homes $1,500 to $1,600 Per Month Unread 5 Bedroom Loveland HUD Homes $1,600 to $1,700 Per Month Unread 5 Bedroom Loveland HUD Homes $1,700 to $1,800 Per Month Unread 5 Bedroom Loveland HUD Homes $1,800 to $1,900 Per Month Unread 5 Bedroom Loveland HUD Homes $1,900 to $2,000 Per Month Unread 5 Bedroom Loveland HUD Homes $600 to $700 Per Month Unread 5 Bedroom Loveland HUD Homes $700 to $800 Per Month Unread 5 Bedroom Loveland HUD Homes $800 to $900 Per Month Unread 5 Bedroom Loveland HUD Homes $900 to $1,000 Per Month Unread 5 Bedroom Loveland REO Homes $0 to $600 Per Month
Level 12Unread 5 Bedroom Loveland REO Homes $1,000 to $1,100 Per Month Unread 5 Bedroom Loveland REO Homes $1,100 to $1,200 Per Month Unread 5 Bedroom Loveland REO Homes $1,200 to $1,300 Per Month Unread 5 Bedroom Loveland REO Homes $1,300 to $1,400 Per Month Unread 5 Bedroom Loveland REO Homes $1,400 to $1,500 Per Month Unread 5 Bedroom Loveland REO Homes $1,500 to $1,600 Per Month Unread 5 Bedroom Loveland REO Homes $1,600 to $1,700 Per Month Unread 5 Bedroom Loveland REO Homes $1,700 to $1,800 Per Month Unread 5 Bedroom Loveland REO Homes $1,800 to $1,900 Per Month Unread 5 Bedroom Loveland REO Homes $1,900 to $2,000 Per Month Unread 5 Bedroom Loveland REO Homes $600 to $700 Per Month Unread 5 Bedroom Loveland REO Homes $700 to $800 Per Month Unread 5 Bedroom Loveland REO Homes $800 to $900 Per Month Unread 5 Bedroom Loveland REO Homes $900 to $1,000 Per Month Unread 6 Bedroom Loveland Homes $0 to $600 Per Month Unread 6 Bedroom Loveland Homes $1,000 to $1,100 Per Month Unread 6 Bedroom Loveland Homes $1,100 to $1,200 Per Month Unread 6 Bedroom Loveland Homes $1,100 to $1,200 Per Month Unread 6 Bedroom Loveland Homes $1,200 to $1,300 Per Month Unread 6 Bedroom Loveland Homes $1,300 to $1,400 Per Month Unread 6 Bedroom Loveland Homes $1,400 to $1,500 Per Month Unread 6 Bedroom Loveland Homes $1,500 to $1,600 Per Month Unread 6 Bedroom Loveland Homes $1,500 to $1,600 Per Month Unread 6 Bedroom Loveland Homes $1,500 to $1,600 Per Month Unread 6 Bedroom Loveland Homes $1,600 to $1,700 Per Month
Level 14Unread 6 Bedroom Loveland HUD Homes $1,600 to $1,700 Per Month Unread 6 Bedroom Loveland HUD Homes $1,700 to $1,800 Per Month Unread 6 Bedroom Loveland HUD Homes $1,800 to $1,900 Per Month Unread 6 Bedroom Loveland HUD Homes $1,900 to $2,000 Per Month Unread 6 Bedroom Loveland HUD Homes $600 to $700 Per Month Unread 6 Bedroom Loveland HUD Homes $700 to $800 Per Month Unread 6 Bedroom Loveland HUD Homes $800 to $900 Per Month Unread 6 Bedroom Loveland HUD Homes $900 to $1,000 Per Month Unread 6 Bedroom Loveland REO Homes $0 to $600 Per Month Unread 6 Bedroom Loveland REO Homes $1,000 to $1,100 Per Month Unread 6 Bedroom Loveland REO Homes $1,100 to $1,200 Per Month Unread 6 Bedroom Loveland REO Homes $1,200 to $1,300 Per Month Unread 6 Bedroom Loveland REO Homes $1,300 to $1,400 Per Month Unread 6 Bedroom Loveland REO Homes $1,400 to $1,500 Per Month Unread 6 Bedroom Loveland REO Homes $1,500 to $1,600 Per Month Unread 6 Bedroom Loveland REO Homes $1,600 to $1,700 Per Month Unread 6 Bedroom Loveland REO Homes $1,700 to $1,800 Per Month Unread 6 Bedroom Loveland REO Homes $1,800 to $1,900 Per Month Unread 6 Bedroom Loveland REO Homes $1,900 to $2,000 Per Month Unread 6 Bedroom Loveland REO Homes $600 to $700 Per Month Unread 6 Bedroom Loveland REO Homes $700 to $800 Per Month Unread 6 Bedroom Loveland REO Homes $800 to $900 Per Month Unread 6 Bedroom Loveland REO Homes $900 to $1,000 Per Month Unread 933 16th St SW Condos Appreciation Rate Unread 933 16th St SW Condos Foreclosure Homes

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