Key Metrics
The numbers that tell you if a deal is good.
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Cash-on-Cash Return (CoC)
Annual cash flow divided by total cash invested — your return on actual dollars deployed.
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Debt Service Coverage Ratio (DSCR)
Net operating income divided by debt payments — can the property pay its own mortgage?
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Return on Investment (ROI)
Total return (including equity) as a percentage of total investment.
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Net Operating Income (NOI)
Gross income minus operating expenses, BEFORE debt service.
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Capitalization Rate (Cap Rate)
NOI divided by property value — the property's return if bought all-cash.
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Vacancy Rate
Percentage of time a rental property sits empty between tenants.
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