Start with GPI — the theoretical ceiling — and then subtract reality. That’s Effective Gross Income, or EGI.

Debt Service Coverage Ratio (DSCR) measures whether a property generates enough NOI to cover its loan payments with room to spare. Formula: DSCR =…

Cashoncash return (CoC) measures the annual cash income generated by a property relative to the equity invested. Formula: CoC = Annual CFBT ÷ Total…

NOI is the property’s income before financing. Cash Flow Before Tax (CFBT) is what the investor actually receives in their bank account after paying…

The capitalization rate — universally called the cap rate — is the return a property would generate if purchased with all cash (no mortgage)….

In multitenant properties — office buildings, retail centers, industrial parks — Common Area Maintenance (CAM) charges allow the landlord to recover…