Independent educational guide
Investment Property Explained
Cash flow, returns, financing, assumptions and property risk explained clearly.
What this publication covers
General educational guides to rental-property cash flow, net operating income, cap rates, financing, leverage, vacancy, reserves, due diligence and risk.
Investment Basics
Income, expenses, cash flow and the structure of a property investment.
Read guide →Returns and Performance
NOI, cap rates, yields, cash-on-cash return and operating ratios.
Read guide →Financing and Leverage
Debt service, interest rates, leverage and financing assumptions.
Read guide →Expenses and Reserves
Operating costs, capital expenditures, taxes, insurance and records.
Read guide →Markets, Risk and Due Diligence
Demand, vacancy, location, liquidity, stress testing and exit planning.
Read guide →Start with these guides
Gross Yield vs Net Yield Explained
Gross yield and net yield are simple-looking property return measures, but they tell different stories. Gross yield compares rent with property value before expenses. Net yield tri
Read guide →How Capital Expenditures Affect Property Investment
Capital expenditures are larger property costs tied to major repairs, replacements or improvements. They can affect cash flow, reserves, financing, resale value, risk and long-term
Read guide →How Cash Flow Works in Investment Property
Cash flow is the money left after income and outgoing payments are considered, but the simple version can be misleading. Investment-property cash flow depends on rent, operating ex
Read guide →How Cash-on-Cash Return Works
Cash-on-cash return compares annual pre-tax cash flow with the actual cash invested in a property. It is a useful way to understand how a financed investment property may perform f
Read guide →How Debt Service Coverage Works
Debt service coverage compares a property’s income with the loan payments it must support. It helps show whether the property appears to produce enough operating income to cover de
Read guide →How Due Diligence Works for Investment Property
Due diligence is the process of checking an investment-property case before relying on it. It helps test rent, expenses, leases, property condition, financing, insurance, local rul
Read guide →Practical browser tools
Use local worksheets to organize assumptions, questions and records. Entries stay in the current browser page and are not sent to this site.
Cash Flow Learning Estimator
Model income, vacancy, operating expenses and debt service with editable assumptions.
Read guide →Cap Rate Learning Estimator
Relate net operating income to purchase price without treating the result as advice.
Read guide →Cash-on-Cash Learning Estimator
Compare annual pre-tax cash flow with cash invested.
Read guide →Debt Service Coverage Estimator
Compare net operating income with annual debt service.
Read guide →