Where cozy means tiny and charming means needs work.
The total acquisition cost of a multifamily property divided by the number of rental units, providing a quick metric for comparing deals. It's how apartment investors reduce complex investments to a single number they can text each other.
The percentage of gross income consumed by operating expenses, revealing how efficiently a property performs. The financial equivalent of checking your car's MPG, but for buildings.
The extra compensation an agent receives when representing both buyer and seller, also called double-ending. Twice the work or twice the conflict of interest, depending on who you ask.
A loan where the borrower remains personally liable even after foreclosure if the property sells for less than owed. It's the lender's insurance policy that you can't just walk away.
Annual pre-tax cash return divided by initial cash invested, the true measure of investment profitability in real-world terms.
The percentage of your gross monthly income that goes toward debt payments, used by lenders to determine if you can afford a mortgage. It's basically a mathematical judgment of your life choices.
A legal claim against a property by contractors or suppliers who weren't paid for work or materials. It's revenge served cold by your deadbeat seller's unpaid roofer.
An agreement that freezes your mortgage interest rate for a specified period while you complete the purchase. It's financial stability in an unstable world, for 30-60 days at least.
A tax levied by state or local government when property ownership changes hands. It's the government's cut of your real estate transaction, because apparently they weren't getting enough already.
The legal right to use and enjoy someone else's property without owning it, common in Louisiana and community property states. It's basically borrowing a house legally and permanently.
A single building cleverly divided into two separate dwelling units, allowing property owners to live in one half while collecting rent from neighbors who share their walls. It's the real estate equivalent of having your cake and eating it too, assuming you don't mind hearing your tenant's TV through the drywall. In postal circles, it's also a fancy stamp cancellation, but nobody cares about that definition anymore.
When city planners wave their magic zoning wands and declare that your neighbor's residential lot can suddenly become a mini-mall, or vice versa. It's the bureaucratic process of changing what you're legally allowed to do with a piece of land, often involving endless public meetings where everyone argues about traffic and property values. Democracy in action, one variance hearing at a time.
Institute of Real Estate Management—professional organization for property managers that awards the CPM (Certified Property Manager) designation. The Ivy League of people who deal with broken toilets and angry tenants.
A method of property distribution in estate planning where a deceased heir's share passes to their descendants rather than being redistributed. Latin for 'please don't fight over my stuff when I'm dead.'
A property valuation method based on the income stream it generates, using capitalization rates to convert annual income into present value. It's how commercial properties are valued, where buildings are essentially money-printing machines worth whatever those dollars command.
The home where you live most of the year, receiving favorable tax treatment including capital gains exclusions and mortgage interest deductions. The IRS cares deeply about distinguishing this from your 'vacation home' to prevent creative accounting.
The soul-crushing process of moving farther from urban centers until home prices match your budget, trading your commute time for square footage. It's the reason some people spend three hours a day in traffic.
An offer with no escape clauses—no inspection, no appraisal, no financing contingencies. It's the real estate equivalent of skydiving without checking if there's a parachute in the backpack, popular in markets where desperation trumps common sense.
A financial forecast showing what a property could theoretically earn under perfect conditions with perfect tenants in a perfect world. The real estate equivalent of a dating profile.
A metric that pretends all square feet are created equal, whether they're in a penthouse or a basement. It's the real estate version of judging a book by counting the pages without reading any of them.
A spreadsheet listing all tenants in a rental property along with their lease terms, payment history, and unit details—basically the property's financial DNA. It's the first thing savvy investors scrutinize when evaluating a deal.
A contract clause allowing buyers to back out or renegotiate if the home inspection reveals problems, serving as an escape hatch for when dream homes turn into money pits. It's the buyer's insurance policy against buying someone else's disaster.
The process of evaluating recently sold similar properties to determine market value, essentially treating home pricing like comparison shopping for toasters. It's the foundation of appraisals and every pricing strategy that claims to be data-driven.
A rent-to-own arrangement combining a rental lease with an option to purchase, letting tenants test-drive homeownership while locking in a future price. It's dating-before-marriage for real estate, popular when buyers can't qualify for financing yet.