Investment Dictionary

Understand essential real estate financial terms—from cap rates to cash flow—with clear explanations to help you invest confidently.

• What is Cap Rate?
• Understanding Normalized vs Raw Cash Flow Metrics in Rescover
• Cap Rate (Capitalization Rate)
• Cash on Cash Return
• IRR (Internal Rate of Return)
• Net Gain (Net Gain on Investment)
• Annual Cash Flow
• Rental Rate Affordability
• Accumulation of Wealth
• Initial Investment
• Cash Flow Shortfall
• Proposed Cost
• Down Payment
• Hold Period
• Annual Property Operating Data (APOD)
• DCR (Debt Coverage Ratio)
• OPEX Ratio (Operating Expense Ratio)
• Potential Rental Income
• Vacancy & Credit Loss
• Effective Rental Income
• Operating Expenses
• Net Operating Income (NOI)
• Non-Operating Expenses
• Total Cash Flow (Net Cash Flow)