Total Portfolio Value
$625,000
Total Equity
$275,000
Pre-Financing Cash Flow
$2,400
Gross Yield
7.68%
Net Yield
4.61%
| Property | Equity | Pre-Financing | Gross | NOI |
|---|---|---|---|---|
| Property 1 | $150,000 | $1,300 | 7.5% | 4.5% |
| Property 2 | $125,000 | $1,100 | 7.9% | 4.8% |
What is a good portfolio yield?
A good gross yield for a US property portfolio is typically between 6% and 10%. Net yield (after expenses) of 4% to 7% is considered solid. The right target depends on your goals — some investors prefer lower yields in areas with strong price growth, while others focus on high cash flow from day one.
How do I calculate equity?
Equity is the difference between a property's current market value and the mortgage balance you still owe. For example, if your property is worth $350,000 and you owe $200,000 on the mortgage, your equity is $150,000. As you pay down the mortgage and the property goes up in value, your equity grows.
When should I add another property?
Consider adding a new property when you have enough equity in your current portfolio to fund a deposit, your existing properties are cash-flow positive, and you have reserves for unexpected costs. Many investors aim for at least 6 months of expenses saved before expanding. Make sure you can still manage the portfolio without stretching yourself too thin.
Note: This tracker shows equity plus operating performance before debt service. Mortgage balances are used for equity, while cash flow and net yield here exclude financing costs unless you include them in monthly expenses.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Publication 527 — Residential Rental Property
- IRS Publication 946 — How to Depreciate Property (MACRS)
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.