Short-Term Rental Investment Glossary
Every term serious STR investors need to know — with plain English definitions and embedded calculators.
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Cap Rate (Capitalization Rate)
Net operating income divided by property value, expressed as a percentage — a financing-neutral measure of investment yield.
Read more →Cash Flow
Net operating income minus debt service — the actual cash remaining after all expenses and mortgage payments.
Read more →Cash-on-Cash Return
Annual pre-tax cash flow divided by total cash invested, measuring the actual return on your equity.
Read more →Cost Segregation
A tax strategy that reclassifies building components into shorter depreciation categories to accelerate tax deductions.
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