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These analytical tools were developed to help real estate investors to understand the risk and returns of residential property investing. These included mortgage calculator, residential property depreciation calculators and property investment calculators. A number of web technology companies have also developed comprehensive all-in-one ...
In real estate investing, the cash-on-cash return [1] is the ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage. = The cash-on-cash return, or "cash yield", is often used to evaluate the cash flow from income-producing assets, such as a rental property.
NOI = (Net income) − (operating expenses) i.e., tax write-offs. depreciation, and mortgage interest are not factored into NOI; whereas: Levered Pre-Tax Cash Flow = NOI − (Debt service) Note that one distinction for real estate property's is that operating expenses include property taxes, as such provisions are part of the business model.
A net sheet is an itemized tally of all the associated costs and expenses a home seller will incur as a result of the transaction, set against the sum the buyer (or prospective buyer) is paying ...
In commercial real estate, recoverable expenses are those expenses of running a property that are billed back to the tenants as a form of additional rent. A simple example is the electricity bill for a large complex that is then divided up among the tenants .
In a narrow sense, the term real estate benchmarking refers to the specific real estate indicators used to measure the real estate properties. [1] The individual indicators are referred to as key performance indicators, or KPI for short. Examples include the net cash flow, total rental incomes, or the internal rate of return. [2]
This is simply the quotient of dividing the annual net operating income (NOI) by the appropriate capitalization rate (CAP rate). For income-producing real estate, the NOI is the net income of the real estate (but not the business interest) plus any interest expense and non-cash items (e.g. -- depreciation) minus a reserve for replacement.
In commercial real estate leases in the United States, the tenant, rather than the landlord, is usually responsible for real estate taxes, maintenance, and insurance. In a "net lease", in addition to base rent, the tenant or lessee is responsible for paying some or all of the recoverable expenses related to real-estate ownership.