How to Read and Understand Real Estate Investment Graphs on REI Lense

When it comes to real estate investment, numbers matter—but visualizing those numbers is even more critical. REI Lense offers a range of graphs and analytics tools to help investors make data-driven decisions with confidence. These tools simplify complex data into intuitive visualizations that let you evaluate potential rental properties, forecast returns, and understand market trends.

This guide is here to help you navigate the key graphs displayed on REI Lense. Whether you're analyzing long-term rentals, short-term vacation properties, or mid-term leasing opportunities, understanding these visualizations will give you an edge in making informed decisions. We’ll cover everything from rent distributions to projections like cash-on-cash return and seasonal revenue trends.

Rent Distribution

The Rent Distribution graph is available for long-term, mid-term, and short-term rentals. It shows how rental prices are distributed across comparable properties in the area, helping investors determine an optimal pricing strategy.

The graph's X-axis represents rental price buckets, where rent prices are divided into equal ranges from low to high (e.g., $1,200–$1,400, $1,400–$1,600, etc.). The Y-axis shows the number of properties within each bucket. Taller bars indicate that more properties fall into a specific price bucket, highlighting where the market demand is concentrated. The graph also marks the bucket the current property belongs to.

Key metrics accompany the Rent Distribution graph to provide additional context:

• Median Rent: The middle value of the dataset—half the properties rent for less, and half for more. In the example provided, the median rent is $1,600.

• Average Rent (Avg): The total rent divided by the number of properties, giving a sense of overall pricing trends. Here, the average rent is $1,657.

• Number of Samples: The number of comparable properties analyzed. With 25 samples in this case, the data provides a reliable snapshot of the local market.

This graph is valuable for investors across all rental strategies. For example, in long-term rentals, the Rent Distribution graph helps you decide a competitive yet profitable rent that aligns with tenant expectations. In mid-term rentals, it highlights stable pricing ranges where properties tend to perform well, while for short-term rentals, it can offer insight into the most common nightly or weekly rates in the area.

For example, in the provided long-term rental graph, the most common rent is around $1,640. Pricing your property near this range ensures competitiveness and faster tenant placement. For properties with premium features, you could set a slightly higher rent; for less competitive properties, staying within the common range is ideal.

The Rent Distribution graph helps investors assess the probability and confidence of a given rent price. The more properties clustered within the same bucket or nearby buckets, the higher the confidence in that price point. By analyzing this distribution across long, mid, and short-term rentals, investors can make data-driven pricing decisions, reducing vacancies and maximizing profitability.

Investment Value YoY

The Investment Value YoY graph tracks how your investment grows over time by combining cash flow, equity accumulation, and property appreciation. It helps investors understand the long-term financial impact of holding a rental property.

The graph includes three key lines:

• Total (Red Line): The overall investment value, combining equity and cash flow.

• Cashflow (Green Line): The cumulative net income from rent after expenses, adjusted for the future value of money (compounded cash flow).

• Equity (Purple Line): The portion of the property you own outright, increasing with mortgage payments and appreciation.

The X-axis represents years, while the Y-axis shows the dollar value of the investment.

For example, in the provided graph, the Total value (red) grows from $64,000 in year 5 to $497,000 by year 30. Cashflow (green) reaches $275,000, reflecting growing rental income, while Equity (purple) rises to $220,000 as the mortgage is paid down.

This graph is essential for assessing long-term investment potential. A steadily rising Total line indicates strong overall growth, while increasing Cashflow ensures profitability. The Equity trend confirms how much ownership is being built over time. By analyzing these trends, investors can gauge whether a property aligns with their financial goals.

Annualized Return

The Annualized Return graph shows how a property's return on investment (ROI) changes over time. It helps investors understand when a rental property becomes profitable and how returns stabilize in the long run.

The X-axis represents the number of years, while the Y-axis shows the annualized percentage return. The curve typically starts negative due to upfront costs (down payment, closing fees, and early expenses) but trends upward as rental income accumulates and equity grows.

For example, in the provided graph, the return is negative in the first few years but crosses into positive territory around year 3. This reflects the fact that selling a property early would almost guarantee a loss due to approximately 10% in fees and commissions, which is accounted for in the chart. By year 10, the return stabilizes at approximately 9–10%, indicating a consistent long-term return.

This graph is crucial for evaluating the investment timeline. If the breakeven point takes too long, an investor may reconsider the financing structure or property selection. A steadily increasing return suggests a solid long-term investment, while fluctuations might indicate market or expense volatility.

By analyzing this graph, investors can set realistic expectations on profitability and compare different properties based on their long-term return potential. Around year 5, the return typically drops due to equity build-up—this is a normal process. It signals an opportunity to redistribute equity for better returns, ensuring the capital remains efficiently utilized.

CoC vs Downpayment

The CoC vs Downpayment graph illustrates how the size of your initial down payment impacts your Cash-on-Cash Return (CoC)—a key metric that measures the return on your actual invested cash.

The X-axis represents the down payment percentage (e.g., 10%, 20%, 30%), while the Y-axis shows the expected Cash-on-Cash Return (%). The curve typically slopes downward, indicating that as the down payment increases, CoC return decreases.

For example, in the provided graph, a lower down payment (e.g., 10%) results in a higher CoC return, while a larger down payment (e.g., 40%) lowers the return. This happens because leveraging more borrowed capital (smaller down payment) increases the percentage return on invested cash. However, a higher down payment reduces financing costs and risk, making it a safer but lower-yield strategy.

Here’s how investors can use this graph to guide their decision-making:

• Higher CoC return (smaller down payment, e.g., 10-15%) → Higher leverage, better short-term returns, but increased financial risk.

• Lower CoC return (larger down payment, e.g., 30-40%) → Lower debt obligations, more stability, but reduced return on invested cash.

• Balanced approach (20-25%) → The most common strategy preferred by lenders, offering a middle ground that balances risk, financing costs, and returns. However, investors can adjust their down payment strategy based on their financial goals and risk tolerance.

By analyzing this relationship, investors can determine the best financing strategy based on their risk tolerance and investment goals.

CoC vs Purchase Price

The CoC vs Purchase Price graph shows how the purchase price of a property affects the Cash-on-Cash Return (CoC). It helps investors understand the relationship between property cost and investment profitability.

The X-axis represents the property’s purchase price, while the Y-axis shows the expected Cash-on-Cash Return (%). The curve typically slopes downward, meaning that as the purchase price increases, the CoC return decreases.

This happens because larger, more expensive properties require higher upfront investment and often have lower rental yield relative to cost. Meanwhile, lower-priced properties tend to have a higher CoC return since the rental income is high relative to the amount of invested cash.

Key takeaways from this graph:

• Lower-priced properties tend to have higher CoC returns, but they may come with more management effort or higher tenant turnover.

• Higher-priced properties typically offer lower CoC returns but can provide more stability and appreciation potential.

• Finding the right balance is key — at some price, any property can generate positive cash flow. This chart helps investors identify that point and compare CoC returns across different price ranges to optimize their risk-reward balance.

For example, if the graph shows that a property priced at $250,000 yields a CoC return of 12%, but a $500,000 property only yields 6%, investors might prioritize the lower-priced option for higher cash flow—unless long-term appreciation is the main goal.

By using this graph, investors can evaluate different price ranges and ensure they’re choosing properties that align with their financial objectives.

Seasonal Revenue & Cashflow

The Seasonal Revenue & Cashflow graph helps investors understand how rental income fluctuates throughout the year. It’s especially useful for short-term rentals, where revenue varies significantly based on seasonality, demand, and local events.

The X-axis represents the months of the year, while the Y-axis shows both Revenue (total rental income before expenses) and Cashflow (net profit after expenses).

• The Revenue line (red) shows how much the property generates each month. Peaks indicate high seasons with strong demand, while dips highlight low seasons.

• The Cashflow line (purple) reflects net profit after expenses like maintenance, mortgage payments, and property management fees.

For example, in the provided graph, revenue is highest in peak seasons, exceeding $3,000, while in off-seasons, it drops closer to $2,100. The cash flow follows a similar pattern, meaning profit is strongly tied to demand fluctuations.

Key insights from this graph:

• Peak months bring maximum profit, making it essential to price strategically to capitalize on demand.

• Low seasons can lead to reduced cash flow, so having a financial buffer or adjusting rental strategies (e.g., discounts for longer stays) can help maintain profitability.

• Comparing multiple properties’ seasonality trends can help investors choose locations with consistent year-round revenue rather than extreme fluctuations.

By analyzing this graph, investors can fine-tune pricing strategies, prepare for seasonal income variations, and maximize overall profitability in short-term rental markets.