Real Estate Glossary | SubMarketIQ

SubMarketIQ

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1

A quick screening rule suggesting monthly rent should be at least 1% of the purchase price. Properties meeting this rule...

A

The increase in a property's value over time. Can result from market conditions (market appreciation) or improvements (f...

B

Buy, Rehab, Rent, Refinance, Repeat. A strategy for building a rental portfolio by recycling capital through cash-out re...

C

Capitalization rate is the ratio of Net Operating Income (NOI) to property value or purchase price. It measures the pote...

Cash-on-Cash Return

The ratio of annual pre-tax cash flow to the total cash invested in a property. It measures the return on the actual cas...

G

GRM (Gross Rent Multiplier)

The ratio of property price to annual gross rental income. A quick metric to compare relative value between properties....

I

Investability Score

SubMarketIQ's proprietary 0-100 score that combines population growth, job growth, rent yields, safety metrics, and land...

L

Landlord Friendliness Score

A metric measuring how favorable a state or market's laws are for property owners, including eviction processes, rent co...

M

A letter grade (A, B, C, D, F) assigned to markets based on their overall investment potential. Grade A markets have the...

N

NOI (Net Operating Income)

The total income from a property minus all operating expenses, excluding mortgage payments, depreciation, and capital ex...

R

The annual rental income as a percentage of the property value. A quick way to assess if rents are reasonable relative t...

V

The percentage of time a rental property sits unoccupied and not generating income. Lower vacancy rates indicate stronge...