30+ essential real estate investing terms explained with formulas, examples, and how Richify helps you track each one.
A property's annual net operating income as a percentage of its purchase price.
The annual cash flow earned on the actual cash invested in a property.
Annual rental income minus operating expenses, before mortgage payments.
The ratio of net operating income to annual debt payments.
The ratio of property price to annual gross rental income.
The annualized return rate that accounts for all cash flows over a property's holding period.
A US tax provision allowing investors to defer capital gains taxes by reinvesting sale proceeds into a like-kind property.
A tax deduction that lets real estate investors write off the wear and tear of an income-producing property over time.
A strategy where an investor accepts short-term losses on a rental property in exchange for tax benefits and long-term appreciation.
The ratio of a property's loan amount to its appraised value or purchase price.
The percentage of time a rental property sits empty without a tenant generating income.
Another name for cap rate — a property's annual NOI as a percentage of its value.
The ratio of a property's purchase price to its annual rental income.
The annual rental income from a property expressed as a percentage of its value.
The growth in your ownership stake in a property as you pay down the mortgage.
The net cash a rental property generates after all expenses including mortgage payments.
The increase in a property's market value over time.
The process of determining a property's market value using one or more standardized methods.
The process of paying off a loan through regular payments that gradually reduce the principal.
The percentage of gross rental income needed to cover all operating expenses and debt service.
The percentage of gross rental income consumed by operating expenses.
The total cost of acquiring a multi-family property divided by the number of rental units.
A document listing all current tenants, their rent amounts, lease terms, and payment status.
A commercial lease structure where the tenant pays property taxes, insurance, and maintenance on top of rent.
Major one-time expenses that improve or extend the useful life of a property.
The expenses incurred when a tenant moves out and a new tenant must be found and placed.
The pace at which available rental units or properties are leased or sold in a market.
The number of days a property is listed for sale or rent before being sold or leased.
Recent sales of similar properties used to estimate a target property's market value.
The estimated market value of a property after planned renovations and repairs are completed.
Richify automatically calculates every metric in this glossary for every property in your portfolio. Track cash flow, cap rate, NOI, equity buildup, and more.
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