Guides

Cap rate is net operating income divided by price. Here's the full formula, a worked example, and why there's no single "good" cap rate — only one that's right for a market.

NOI is a rental's income after operating expenses but before financing. This guide itemizes every line that belongs in it — and the ones that don't — with a full worked example.

Cash-on-cash return measures annual pre-tax cash flow against the cash you actually invested. Here's how it differs from cap rate, how to calculate it, and what the number is really telling you.

ARV is what a property will be worth once it's fixed up — estimated from comparable sales, not guesswork. Here's the price-per-square-foot method, a worked example, and where it goes wrong.

The 70% rule sets a flipper's maximum offer: ARV × 70% minus repairs. Here's where the number comes from, how to run it, and why it's a starting point — not a law.

A reliable repair budget is built line by line from a scope of work, not pulled from a per-square-foot average. Here's how to itemize a rehab, add contingency, and avoid the estimate that sinks a deal.

Flip profit is the sale price minus every cost — purchase, rehab, holding, and selling. This guide walks through the four cost buckets most flippers underestimate and how return on cost measures the deal.

Buy, rehab, rent, refinance, repeat — how a cash-out refinance recycles your capital into the next deal, what the numbers have to do to make it work, and where the strategy breaks down.

The amortization formula behind every monthly payment, why early payments are almost all interest, and how taxes, insurance, and HOA turn P&I into the full PITI a rental actually costs.

A lower rate isn't automatically a win. This guide shows how to weigh monthly savings against closing costs, find your break-even point, and spot the refinance that quietly costs more over the life of the loan.

An amortization schedule shows where every payment goes and how the balance falls over time. Here's how to read one, why the principal/interest split flips mid-loan, and how extra payments change the table.

"Renting is throwing money away" is a myth. A fair comparison weighs a home's appreciation and equity against the opportunity cost of your down payment and the real costs of ownership. Here's the honest framework.

Cash flow is what actually lands in your pocket — gross rent through vacancy, operating expenses, and the mortgage. This guide builds the full monthly pro-forma line by line and names the expenses beginners miss.

DSCR is net operating income divided by debt service — the number rental and DSCR-loan lenders use to size a loan. Here's how to calculate it, what thresholds like 1.25 mean, and why it can qualify a property on its own income.

The 1% rule is a fast screen: a rental's monthly rent should be at least 1% of its all-in purchase price. Here's where the number comes from, how to run it, and why it's a filter — not a verdict.

Cap rate ignores your mortgage, appreciation, and tax benefits — this guide explains which metrics to run alongside it so a property that looks good on paper doesn't drain cash every month.