Where cozy means tiny and charming means needs work.
Ongoing expenses of property ownership including mortgage, taxes, insurance, utilities, and maintenance while holding property for investment. These costs literally 'carry' you financially from purchase to sale, often eating profits investors forgot to calculate.
A performance metric showing the annual pre-tax cash flow divided by the total cash invested, expressed as a percentage. It's how rental property investors measure whether they're getting a decent return or just being a charity for tenants.
A valuation method comparing a property to similar recent sales in the area, also known as 'pretending your house is worth what you want it to be.'
Breaking down property components into depreciable categories with different useful lives to accelerate tax deductions—basically legal tax magic for real estate investors.
Short-term financing for building or renovating property, typically disbursed in stages as construction progresses rather than all at once. It's banking's trust exercise, betting you can actually finish the project before the money runs out.
Comparative Market Analysis—a report comparing similar properties to determine a home's market value. It's like Zillow's estimate, except prepared by an actual human who might know what they're doing.
Annual net income divided by property cost, the primary metric for evaluating commercial real estate investments.
Annual pre-tax cash return divided by initial cash invested, the true measure of investment profitability in real-world terms.
A mortgage that meets Fannie Mae and Freddie Mac's size and underwriting requirements, making it eligible for government backing. Essentially, it's a loan that colors inside the lines and gets rewarded with better interest rates.
An agent's version of market research, using comparable sales to estimate a property's value—less formal than an appraisal, equally debatable.
Legal rules governing how you can use your property, basically buying land with invisible chains attached.
Covenants, Conditions & Restrictions—the rulebook that HOAs use to control your life in writing.
Recently sold properties used to determine market value, cherry-picked by whichever party needs to prove their point. The art of comparing apples to slightly different apples.
An offer with conditions that must be met—basically 'I'll buy this if it doesn't fall apart when I inspect it.'
The person you hire when you want something built without the messy commitment of actual employment or the liability of their questionable choices. In real estate and construction, they're the orchestrators who either deliver your dream renovation or become the subject of your next lawsuit, depending largely on how thoroughly you checked their references. They exist in the sweet spot between skilled tradesperson and project manager, usually showing up exactly when they feel like it.
A legal claim filed by contractors, subcontractors, or suppliers against a property when they haven't been paid for work or materials. The construction industry's way of ensuring they don't become involuntary donors.
A formal document modifying the original contract, usually adding more work, more time, or more money—often all three. It's how contractors politely inform you that your 'simple request' will cost an additional $5,000. Change orders are proof that nothing is ever as simple as the original estimate suggested.
Cumulative Days on Market—total time a property has been listed, including periods off-market and relisting. It's the zombie metric agents hope nobody notices.
The legal equivalent of handing over property with enough paperwork to build a small forest—officially transferring ownership through a binding, notarized document. When real estate is conveyed, the deed changes hands, lawyers get paid, and one party gets keys while the other gets regret or relief.
A mandatory document providing borrowers with loan terms and final costs before closing. It's the moment buyers realize they're paying thousands in fees they forgot about or didn't fully understand.
Converting a rental apartment building into individually owned condos. When a landlord turns renters into homeowners, permanently ending a community.
Limitations on property use recorded in the deed, binding future owners. They're the previous owner's way of controlling your property forever—kind of a creepy form of real estate haunting.
A recently sold property similar to your target property, used to determine fair market value. Real estate agents use them to justify why your home is definitely worth exactly what you want it to be worth.
An ornamental molding that projects along the top of a wall, building, or other structure, often found at the junction between a wall and ceiling. It serves both decorative and functional purposes, helping to conceal the joint and add architectural detail.