Plain-English definitions for the terms you'll encounter on your financial journey.
A metric used to estimate the potential rate of return on an investment property, calculated by dividing the net operating income by the property's asset value. It helps investors quickly compare the relative profitability of different real estate opportunities.
The total income generated from a property minus all necessary operating expenses.
Net Operating Income is the money a rental property earns after paying for regular expenses like taxes and maintenance, but before paying any mortgage or income taxes. Think of it as the profit your building generates from being open for business.