7 Types of Roi That Matter Most in Real Estate Investing

Cap Rate 

A metric used to evaluate the potential return on a real estate investment based on the property's income and value.

1

Cash-on-Cash Return 

A ratio that compares the amount of cash generated by a real estate investment to the amount of cash invested.

2

Gross Rent Multiplier (GRM)  

A ratio that compares the property's sale price to its gross rental income.

3

Net Operating  Income (NOI) 

The total income generated by a property minus the expenses incurred to operate it.

4

Return on  Investment (ROI) 

The percentage of profit generated by a real estate investment relative to the amount of capital invested.

5

Internal Rate  of Return (IRR) 

A measure of the profitability of a real estate investment over time, taking into account the time value of money.

6

Equity Multiple 

A measure of the total return on a real estate investment, taking into account both cash flow and appreciation.

7

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