Investor basics

Real estate terms,
without the spreadsheet fog.

Short, practical explanations for the words investors throw around before a deal gets expensive.

What does NOI mean?

Plain-English NOI guide for investors: what net operating income means, what it excludes, and why mortgage payments do not belong in it.

Understand DSCR in plain English: how debt service coverage ratio works, what 1.25x means, and why lenders care about it.

A beginner-friendly cap-rate explanation with formula, example, and the reason cap rate is not the same as cash flow.

Learn what cash-on-cash return means, how to calculate it, and why total cash invested matters more than down payment alone.

Plain-English ARV guide for flips and BRRRRs: what after-repair value means, how comps support it, and what can go wrong.

Learn maximum allowable offer in plain English, including how rehab, holding costs, profit, and fees affect the highest safe offer.

Understand the BRRRR strategy: buy, rehab, rent, refinance, repeat, and the numbers investors should verify before buying.

Rental cash flow explained simply: income minus full operating costs and debt service, not just rent minus the mortgage.

A practical explanation of the 1% rule, how rent-to-price works, and why this shortcut is only a first-pass rental screen.

Learn what a rent roll is, what investors should look for in it, and how rent roll quality affects NOI and property value.