Capitalization Rate which represents the ratio between the effective net income and the sale price.
Net Income Multiplier, indicates how many times the net operating income represents the cost of acquiring the property.
Debt Coverage Ratio, used to judge the ability to repay a debt from the net income generated by the property.
This ratio indicates the level of occupancy required to meet the financial and operating obligations. It is the Break Even Point.
Ratio of the sum of cash flows and equity generated divided by the total down payment, over a 10-year period.
Corresponds to the down payment required by the bank and the related acquisition costs.
The value of the property taking into account income and expenses, the interest rate and the debt coverage ratio.
Residual liquidity after all obligations and operating expenses are paid, including the mortgage.
Internal Rate of Return, a ratio that takes into account the purchase price, the discounting of all net cash flows and the net proceeds of the sale of the property.
Cash on Cash, ratio of the sum of cash flows to the total down payment over a 10-year period.
Gross income multiplier, indicates how many times the gross income represents the cost of acquiring the property. It is a simple ratio but whose reliability is low.
Corresponds to the acquisition price divided by the number of dwellings. It is a simple ratio but whose reliability is low.