A SAMPLE $120,000 CONVERSION
Sample
Cash Flow.
Change the budget, rent, and costs to explore your scenario. Share it with us when you request a garage review.
These examples assume a $120,000 conversion paid in cash, self-management, and 95% occupancy. Rent and costs are illustrative assumptions, not local market rates or construction quotes.
Make the numbers
your own.
Start with either sample, then change the assumptions.
ILLUSTRATIVE MONTHLY OPERATING CASH FLOW
Before financing payments and income tax.
Sample assumptions, not a quote or a rent forecast. This simplified estimate excludes financing, income tax, appreciation, and one-time rental setup costs. Self-managed examples exclude paid property-management fees. Use local rental data and property-specific quotes before making a decision. IRS guide to rental income and expenses.
View the full sample cost breakdown
Scroll sideways to compare both layouts.
| How the numbers work | One-bedroomBedroom, bathroom, living area & dining area | StudioSleeping, bathroom, kitchen, living area & dining area |
|---|---|---|
| One-time conversion investment | $120,000 | $120,000 |
| Assumed monthly rent | $2,200 | $1,800 |
| Vacancy allowance 5% of rent | −$110 | −$90 |
| Repairs & maintenance reserve | −$150 | −$125 |
| Added property-tax budget | −$150 | −$150 |
| Insurance budget | −$75 | −$75 |
| Owner-paid utilities | −$125 | −$75 |
| Admin & listing budget | −$50 | −$25 |
| Total costs & reserves Excludes vacancy above | $550 | $450 |
| Monthly cash flow after budgeted costs | $1,540 | $1,260 |
| Annual cash flow | $18,480 | $15,120 |
| Annual cash yield On the $120,000 conversion cost | 15.4% | 12.6% |
| Simple conversion-cost recovery | About 6.5 years | About 7.9 years |
| Try either example in the calculator. |
Monthly cash flow = rent − vacancy allowance − costs and reserves. Simple cost recovery = conversion cost ÷ annual cash flow, assuming unchanged rent and costs. This measures the conversion investment only, before financing payments and income tax.
Considering a loan? Explore financing options and account for the payment when reviewing your cash flow.