Capitalization rate measures the property's net operating income (NOI) relative to its purchase price. A higher cap rate generally indicates better returns but may come with higher risk.
This metric shows your annual cash flow return on the actual cash invested (down payment + closing costs). Most investors target 8-12% for strong performance.
The 2% rule suggests monthly rent should be at least 2% of the purchase price. While ideal, many good investments in quality areas like Skye Canyon may be closer to 1%.
This ratio compares NOI to debt payments. A DSCR above 1.25 is generally considered strong, providing a buffer for unexpected expenses or vacancy.