Real estate investing glossary

Valuation

• After Repair Value · ARVThe estimated market value of a property after planned renovations are complete.
• Capitalization Rate · Cap RateThe annual unlevered return of an income property, expressed as a percentage of its value.
• Cash-on-Cash ReturnAnnual pre-tax cash flow divided by total cash invested — the levered yield on actual dollars committed.
• Comparable Sales · CompsRecent sales of similar properties used to estimate the market value of a subject property.
• Net Operating Income · NOIGross rental income minus operating expenses, excluding debt service — the unlevered cash flow of an income property.
• Gross Rent Multiplier · GRMProperty price divided by annual gross rent — a quick-screen valuation ratio for rental real estate.
• Vacancy RateThe percentage of time a rental property is unoccupied — a key input to NOI and DSCR stress testing.
• EquityThe owner's stake in a property — fair market value minus all liens and debt.

Strategy

• Buy, Rehab, Rent, Refinance, Repeat · BRRRRA long-hold real estate strategy that recycles capital through a cash-out refinance after stabilization.
• The 70% RuleA fix-and-flip discipline that caps the maximum allowable offer at 70% of ARV minus rehab and costs.
• Holding CostsThe total cost of owning a property during a flip — interest, taxes, insurance, utilities, and HOA — measured per month.
• Closing CostsTransaction costs paid at acquisition and at sale — typically 2–4% on the buy side and 5–7% on the sell side.
• Earnest Money Deposit · EMDA good-faith deposit a buyer puts down with the offer — typically 1–3% of purchase price — held in escrow until close.
• Title InsuranceInsurance that protects against losses from defects in property title — paid once at close, covers the duration of ownership.
• EscrowA neutral third-party arrangement that holds funds, documents, or property until contractual conditions are met.
• Wholesale Real EstateA strategy where the wholesaler contracts a property and assigns the contract to a buyer for an assignment fee — typically without taking ownership.
• Section 8 HousingThe US federal Housing Choice Voucher program — tenants pay 30% of income; HUD pays the rest directly to the landlord.

Financing

• Hard Money LoanShort-term, asset-collateralized real estate financing from a private lender — fast to close, higher-cost.
• Loan-to-Value · LTVThe ratio of a loan amount to the appraised value of the underlying property.
• Debt-Service Coverage Ratio Loan · DSCRAn investment property loan qualified on the property's rental income rather than the borrower's W-2 income.
• Principal, Interest, Taxes, Insurance · PITIThe four standard components of a monthly mortgage payment on financed real estate.
• Points (Loan Origination)An upfront fee paid to a lender to originate a loan — each 'point' equals 1% of the loan amount.
• Subject-To Financing · Sub-ToA creative financing structure where the buyer takes ownership but the seller's existing mortgage stays in place.
• Seller FinancingAn arrangement where the seller acts as the lender — buyer makes payments to the seller instead of (or in addition to) a bank.

Tax

• 1031 ExchangeA US tax-deferral mechanism that lets investors defer capital gains tax by reinvesting proceeds into a 'like-kind' property.

Asset

• Accessory Dwelling Unit · ADUA secondary, self-contained dwelling on the same lot as a primary residence.

How DealIntel uses these terms

Every metric on this page shows up somewhere in the DealIntel evaluation flow — ARV anchors the verdict, LTV constrains financing, DSCR gates the BRRRR refinance, comps drive confidence, and 1031 surfaces as a long-hold exit option. Understanding the terms makes the verdict actionable.

Matt Abadi is the founder of DealIntel. He leads the development of the platform's six-strategy underwriting engine, 25-point Kill List, and Monte-Carlo financial model — the institutional analysis stack DealIntel applies to every fix and flip deal. DealIntel was founded in 2025 with the central thesis that knowing when not to invest is the most valuable number on the page.