Investment Deal Metrics

Net Operating Income - It is the total income the property generates (after all expenses), not including debt service costs (loan costs).


Cash Flow - Cash flow is the total profit you will see at the end of the year from the property. To determine the cash flow, simply subtract the total expenses from the total income.


Cap Rate - The capitalization rate (Cap Rate), is used determine what a property is worth. It takes into account vacancy, credit losses, other income, and operating expenses.


Cash-on-Cash Return - Cash-on-cash (COC) return is directly related to the amount of cash you put down on the investment.


Internal Rate of Return - Internal rate of return (IRR) for an investment is the percentage rate earned on each dollar invested for each period it is invested.


Net Present Value - Net present value (NPV) is an investment measure that shows whether the investment is achieving a target yield at a given initial investment.

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