A quick rule of thumb that says rental income should equal at least 1% of the property’s total cost. Used for initial investment screening.

A 1031 exchange lets real estate investors defer capital gains taxes by reinvesting proceeds from a property sale into a similar investment property.

An ARM is a type of mortgage where interest rates change periodically based on market conditions, potentially lowering or increasing monthly payments.

ARV (After Repair Value) estimates what a property will be worth after renovations and is used to evaluate deals and plan profitable flips or BRRRR strategies.

Absorption rate is a metric used to track how fast properties sell in a given market. It helps investors identify supply-demand dynamics and time market entries or exits.

Understand how loan amortization works and how it impacts mortgage payments over time.

An amortization schedule outlines each mortgage payment's breakdown into principal and interest over the loan’s term.

Learn how property appreciation increases value over time and why it’s a key factor in real estate investing.

Appreciation trend shows the historical and projected increase in property value over time—crucial for evaluating long-term gains.

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a real estate strategy that helps investors scale fast by recycling capital from one deal to the next.

Build-to-Rent refers to properties developed specifically for long-term rental use, offering scalable income for investors.

Break-even rent is the minimum monthly rent needed to cover all property expenses, ensuring no profit or loss occurs.

Buy and Hold is a long-term real estate strategy where investors generate income through rental properties while building equity over time.

Learn how CFPU helps investors measure rental property profitability on a per-unit basis.

Discover how Cap Rate helps investors evaluate a property's profitability and return potential.

Cap rate compression refers to declining cap rates due to rising property values, affecting investor returns.

A key metric showing the annual return on an investor’s actual cash investment in a property.

A Chart of Accounts is a financial system that categorizes all transactions in a business, helping real estate investors track income, expenses, and profitability.

A breakdown of common closing costs, including lender fees, inspections, and title expenses.

Construction starts indicate the number of new building projects that begin construction, signaling real estate market activity.

Days on Market measures the number of days a property is listed before it’s sold, offering insight into market activity and pricing.

Find out how DSCR helps lenders assess a property's ability to cover loan payments.

A demographic shift is a significant change in population traits like age or income that affects real estate trends and investor decisions.

Depreciation allows real estate investors to deduct the loss of value in a property over time, reducing taxable income and improving cash flow.

A distressed property is real estate under financial hardship or foreclosure, often sold at a discount to attract investors.

A downturn is a period of declining real estate activity, often marked by falling prices and slower demand.

Equity is the difference between a property’s market value and the outstanding loan balance, representing an investor's ownership stake.

Escrow is a financial arrangement where a neutral third party holds funds until contract terms are met, commonly used in real estate transactions.

The eviction process is the legal method landlords use to remove tenants who violate lease terms or fail to pay rent, typically involving court procedures and official notices.

An exit strategy is a real estate investor’s plan for profiting from a deal—whether by flipping, renting, refinancing, or selling with creative terms.

Learn how Fair Housing Law protects buyers and renters from discrimination in real estate transactions.

Fix and flip is a real estate strategy where investors buy, renovate, and quickly resell properties to earn a profit, often used in hot or undervalued markets.

Learn the benefits of a fixed-rate mortgage and how it provides stable, predictable payments.

The Gross Rent Multiplier (GRM) is a simple valuation method that compares a property’s price to its annual rental income to assess profitability.

Rental yield measures rental income as a percentage of property value. A key metric for evaluating the income potential of an investment property.

An HOA is a residential community association that manages shared amenities and enforces property rules.

A guide to hard money loans—how they work, when to use them, and their pros and cons.

Holding costs are ongoing expenses such as property taxes, insurance, and maintenance that investors incur while owning a property before selling or renting.

Discover how house hacking allows investors to reduce housing costs by renting out portions of their property.

Understand how LTV measures loan risk and impacts mortgage approval and interest rates.

A landlord-tenant agreement is a lease contract that defines the rental relationship between property owner and occupant.

A guide to lease agreements, covering essential terms and rights for landlords and tenants.

Using borrowed money to invest in real estate, allowing you to control larger assets with less capital. A powerful strategy to amplify returns—if used wisely.

A maintenance reserve fund is money set aside from rental income to cover repair and upkeep costs on an investment property.

Explore the different types of mortgage loans and how they work for real estate investors.

A fundamental metric for evaluating a property's profitability before debt expenses.

Owner financing and lease options let buyers purchase or control property without traditional bank loans, using direct seller agreements or rent-to-own setups.

Learn how a P&L statement tracks rental income and expenses to assess property performance.

Passive real estate investing allows investors to earn income without managing properties directly, often through REITs, syndications, or funds.

A property condition report records a property’s state at lease start/end to document damages or needed repairs.

A property inspection is an expert evaluation of a property’s condition used to assess value, safety, and repair needs.

A property management company handles the daily operations of rental properties on behalf of the owner, including rent collection, maintenance, and tenant relations.

Learn how to calculate ROI and evaluate the profitability of real estate investments.

Real estate syndication is a group investment structure where multiple investors pool funds to buy and manage larger real estate deals.

A rent roll is a summary of tenant data and rental income used to evaluate property performance.

A security deposit is money collected from tenants upfront to cover potential damage, unpaid rent, or lease violations during a rental period.

A sublease agreement allows a tenant to rent out the property to another person while still being bound by the original lease.

The tenant screening process helps landlords evaluate applicants through credit, background, and income checks to reduce rental risk.

A tenant who occupies a property without a fixed-term lease and can be asked to vacate with proper notice.

Wholesaling is a real estate strategy where investors assign purchase contracts to end buyers for a profit, without owning the property.