Annual Revenue: The total money a property makes in a year from rent
Gross Yield: A measure of income before expenses, calculated as the annual revenue divided by the property's price, shown as a percentage.
NOI (Net Operating Income): The income left after paying all operational costs of the property
Cap Rate (Capitalization Rate): A rate that shows the return on an investment property, found by dividing NOI by the property's market value
Upfront Equity: The initial cash investment made in a property, such as a down payment, not including any borrowed funds.
Leveraged Net Cash Flow: The remaining money from a property each year after paying all costs
Cash-on-Cash Return: The rate of return on the actual cash invested, determined by dividing the annual cash income by the cash invested.
Essential Investment Terms for Understanding This Cases