Topic library
Property Returns
NOI, cap rates, yields, cash-on-cash return and operating ratios.
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
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
Read guide →What Cap Rate Means
Cap rate, short for capitalization rate, compares a property’s net operating income with its value or purchase price. It is a useful investment-property concept, but it c
Read guide →What Net Operating Income Means
Net operating income, often shortened to NOI, is a property-level measure of income after operating expenses but before financing. It helps separate the performance of th
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