Terms Starting with R
211 terms
70% Rule
The 70% rule is a fix-and-flip guideline: your maximum purchase price should not exceed 70% of ARV minus renovation costs, leaving room for profit and holding costs.
Base Rent
Base rent is the fixed, minimum amount a tenant pays to occupy a space—before any additional charges for property taxes, insurance, maintenance, or percentage rent are added.
Bathroom Renovation ROI
Bathroom Renovation ROI is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of fix and flip deals.
Break-Even Ratio
The break-even ratio (BER) is the percentage of gross rental income needed to cover debt service and operating expenses—the point at which cash flow is zero.
Cap Rate Range
Cap Rate Range is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
Cash Reserves
Cash reserves are liquid funds set aside to cover unexpected expenses, vacancies, and repairs on rental properties—the financial cushion that keeps you from selling assets or taking on debt when a furnace fails or a tenant moves out.
Cash-Out Refinance
A cash-out refinance replaces your existing mortgage with a new, larger loan and gives you the difference in cash—often used in BRRRR to recover capital after adding value.
Cash-on-Cash
Cash-on-cash (CoC) is the annual cash flow from an investment property divided by the total cash you invested—down payment, closing costs, and any initial capital improvements.
Cash-on-Cash After Refinance
Cash-on-Cash After Refinance is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of brrrr strategy deals.
Cash-on-Cash Return
The annual pre-tax cash flow from a rental property divided by the total cash you invested — the most direct measure of how hard your money is actually working.
Concentration Risk
Concentration Risk is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of deal analysis deals.
Contingency Waiver
Contingency Waiver is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of purchase process deals.
Credit Report
A credit report is a detailed record of your credit history compiled by the three major bureaus—Equifax, Experian, and TransUnion. Lenders use it to evaluate your creditworthiness when you apply for a mortgage or commercial loan.
DTI Ratio
A comparison of total monthly debt payments to gross monthly income. Lenders use DTI to assess how much additional debt a borrower can handle.
Debt Coverage Ratio
Debt coverage ratio (DSCR) is NOI divided by annual debt service—how many times the property's income covers the mortgage payment. Lenders typically require 1.25x or higher.
Distribution Yield
Distribution Yield is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of passive real estate investing deals.
Diversified REIT
A diversified REIT is a real estate investment trust that owns and operates properties across multiple sectors—office, retail, industrial, residential, healthcare—within a single portfolio, providing built-in diversification across property types and economic cycles.
Dividend Yield
Dividend Yield is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of passive real estate investing deals.
Five Dollar Rule
The five dollar rule is a mental model where you ask yourself, "Will this purchase matter in five years?" and "Would I pay five dollars to have made this decision?" — helping aspiring real estate investors filter out impulse spending and redirect money toward their first property.
Fund Expense Ratio
The fund expense ratio is the annual percentage of a fund's assets used to pay for management, administration, and other operating costs — deducted from returns before you see them.
Holding Period Return
Holding Period Return is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of rental strategy buy and hold deals.
In-Place Rent
In-Place Rent is a financial analysis concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of rental strategy buy and hold deals.
Interest Rate Risk
Interest Rate Risk is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of deal analysis deals.
Kitchen Renovation ROI
Kitchen Renovation ROI is a deal evaluation concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of fix and flip deals.