Commercial Real Estate Flashcards
1
Q
Net Operating Income (NOI)
A
Annual Income - Annual Expenses (Excluding Debt Service)
2
Q
Cash-on-Cash Return
A
Annual Cash Flow / Initial Cash Investment (expressed as a percent)
3
Q
Payback Period
A
Initial Cash Investment / Annual Cash Flow
4
Q
Cap Rate
A
NOI / Purchase Price (expressed as a percent)
5
Q
Purchase Price
A
NOI / Cap Rate
6
Q
Value-Added
A
Incremental NOI / Cap Rate
7
Q
Debt Service Coverage Ratio (DSCR)
A
NOI / Mortgage Payments
8
Q
Loan-to-Value
A
Loan Amount / Appraised Value (expressed as a percent)
