Learn how to calculate and use the most important property analysis metrics.
The cash on cash return, often abbreviated as COC, is a popular measure of investment return used when evaluating residential and commercial rental properties. The COC shows a projected cash yield you will receive from a rental property and can be used both to compare...
The debt service coverage ratio (DSCR), also called the debt coverage ratio (DCR), is often used by real estate lenders when underwriting loans for rental properties, especially when working with commercial real estate. The DSCR is an indicator of whether a property's...
The break-even ratio, abbreviated as BER, is most commonly used as un underwriting criteria by commercial real estate lenders, although it is a useful metric to know when analyzing any rental property. The break-even ratio shows the minimum percentage of occupancy...
The gross rent multiplier, abbreviated as GRM, is an indicator of rental property performance, commonly used to evaluate and compare both residential and commercial rental investments. In simple terms, this property analysis metric shows you the number of years it...
