What Is Rental Cash Flow? How the Math Works
Cash flow is what's left of the rent after operating expenses and the loan payment. Here's the formula, each line item, and a fully worked example.
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8 articlesCap Rate Explained: Formula, Examples and What It Measures
Capitalization rate compares a property's net operating income to its price. Here's how to calculate it, what it captures, and where it falls short.
Cash-on-Cash Return Explained
Cash-on-cash return compares a year of pre-tax cash flow to the cash actually invested. Here's the formula, what counts as cash invested, and a worked example.
ROI in Real Estate: Measuring Total Return on Cash Invested
Real estate ROI can combine cash flow, principal paydown and appreciation. Here's how each piece is calculated and how they add up over a holding period.
Gross vs. Net Rental Yield: What Each One Measures
Gross yield divides annual rent by price. Net yield subtracts expenses first. Here's how to calculate both and why the gap between them matters.
Net Operating Income (NOI): What Goes In and What Stays Out
NOI is a property's income after vacancy and operating expenses, before debt service. Here's exactly which items belong in it, with a line-by-line example.
The 1% Rule: What It Measures and Where It Falls Short
The 1% rule compares monthly rent to purchase price as a quick screen. Here's the math behind it, what it implies, and what it leaves out.
Cap Rate vs. Cash-on-Cash Return: What's the Difference?
Both are percentages built on NOI, but they answer different questions. Here's how cap rate and cash-on-cash return differ, with the same property run both ways.