Metric glossary

Every underwriting term REIzer reports, defined the way the analyzers actually compute it. These are the same definitions shown as tooltips inside the app.

Income & returns

Monthly cash flow: What lands in your pocket each month after every operating expense and the mortgage payment.
Annual cash flow: Yearly pre-tax cash left after all operating expenses and the mortgage.
Cash-on-cash return (CoC): Annual pre-tax cash flow ÷ the cash you actually put in (down payment + closing + rehab). Your real first-year return on invested cash.
Cap rate: Net operating income ÷ purchase price. The unleveraged yield — what the property earns before any mortgage. Higher = more income per dollar of price.
NOI (net operating income): All rental income minus operating expenses, before the mortgage. The property's core earning power.
GRM (gross rent multiplier): Price ÷ annual gross rent. A quick price-to-rent gauge; lower means cheaper relative to the rent it produces.
Gross rental yield: Annual gross rent ÷ purchase price — a quick income yield before expenses.
Total return: The combined return over the hold — cash flow collected plus equity gained (appreciation + principal paydown), relative to the cash invested.
Cash payback: How many years of cash flow it takes to recover the cash you invested.
10-yr equity: Projected equity in the property after 10 years — value minus loan balance.
Final net worth: Projected net worth at the end of the hold if you sold — equity plus cash flow collected, minus selling costs.

Debt & risk

DSCR (debt-service coverage ratio): NOI ÷ annual mortgage payment. How many times income covers the debt. Lenders typically want 1.20 or higher. See DSCR & the 70% rule.
Annual debt service: The total yearly mortgage payment (principal + interest) on the loan.
Break-even occupancy: The occupancy level where income just covers all expenses + the mortgage. Lower = more cushion before you go cash-flow negative.
Min rent: The lowest market rent at which the deal still breaks even on cash flow.
Max rate: The highest interest rate the deal can absorb while keeping DSCR at the lender's 1.20 minimum.
Max vacancy: The highest vacancy rate the deal can absorb before cash flow turns negative.
Break-even cushion: How far the sale price (or ARV) can fall before the deal only breaks even. A bigger cushion = more margin of safety.

Multifamily & value-add

In-place cap rate: Cap rate on today's actual (in-place) rents, before any value-add.
Price / unit: Purchase price ÷ number of units. How multifamily buyers compare buildings of different sizes — lower per-door is cheaper.
Gross scheduled income: The rent occupied units are actually paying today, annualized (in-place).
Gross potential rent: What every unit would collect at full market rent if fully leased. The pro-forma ceiling.
Economic occupancy: Rent actually collected ÷ gross potential rent. Unlike physical occupancy it also captures below-market rents — the gap is your loss-to-lease.
EGI (effective gross income): Scheduled rent minus vacancy/credit loss, plus other income. The income you can realistically bank.
NOI lift: The increase in NOI from in-place to stabilized after executing the value-add plan (raising rents to market).
Stabilized value: Estimated value once rents reach market: stabilized NOI ÷ the exit cap rate.
Value created: Stabilized value minus your all-in basis (price + rehab). The equity the reposition manufactures.
Yield-on-cost: Stabilized NOI ÷ total all-in cost. Compare it to the market cap rate — a positive spread means you build value cheaper than buying it stabilized.
Min in-place rent: The lowest average in-place rent at which the deal still breaks even on cash flow.

BRRRR, Fix-n-Flip & New Construction

ARV (after-repair value): What the finished, renovated property would sell for, based on comparable sales of similar homes. (Residential, comps-based — different from a multifamily "stabilized value," which is income-based.)
Min ARV: The lowest after-repair value at which the deal still hits its target — e.g. full capital recovery (BRRRR) or break-even (flip).
Capital recovery: The share of your invested capital you pull back out when you refinance. 100%+ means you recover all your cash and can repeat.
Cash left in deal: The cash still tied up in the property after the cash-out refinance — what you could not pull back out.
Cash returned at refi: The cash you pull back out of the deal at the cash-out refinance.
After-tax profit: Your profit on the sale after selling costs, holding/financing costs, and income taxes.
After-tax margin: After-tax profit as a share of the sale price — how much of the sale you actually keep.
Annualized ROI: Return on invested cash scaled to a yearly rate, so a short flip compares fairly against a long hold.
Development spread: Yield-on-cost minus the market cap rate. A positive spread means you build the asset cheaper than you could buy it stabilized — the core new-construction / value-add signal.
Exit cap rate: The cap rate you assume a future buyer will pay when you sell. It converts stabilized NOI into a sale value (Value = NOI ÷ exit cap). A higher exit cap = a lower sale price, so it is the conservative dial.
Max rehab budget: The most you can spend on rehab and still hit the deal's target return.
Max extra schedule: The most the project can run over schedule before it stops meeting its target return.
70% rule: Purchase + rehab should stay under 70% of ARV. See DSCR & the 70% rule.

Short-term rental

ADR (average daily rate): The average nightly price the short-term rental charges.
Occupancy: The share of available nights the short-term rental is booked.
Gross annual revenue: Total annual rental income before any expenses (nightly rate × occupancy × 365, plus other income).
Break-even ADR: The lowest average nightly rate at which the rental still covers all expenses plus the mortgage.