Glossary
Key investment terms defined.
Cap rate, NOI, DSCR, and IRR.
NOI is net operating income before debt service. Cap rate equals NOI divided by value. DSCR compares NOI to debt payment. IRR reflects time-weighted return across cash flows including acquisition, hold, and disposition.
Florida terms
Homestead does not apply to non-owner-occupied rentals. Doc stamp taxes apply on deed transfers at sale. Tangible personal property tax may apply to furnished rental equipment in some counties.
Construction terms
CO is certificate of occupancy. C2P is construction-to-permanent financing. Builder's risk covers the structure during active construction — distinct from landlord coverage after lease-up.
Underwriting ratios
GRM is gross rent multiplier — price divided by annual gross rent. Cash-on-cash compares annual pre-tax cash flow to equity invested. LTV is loan-to-value at acquisition or refi.
Association terms
Estoppel confirms HOA fees and violations. Rental addendum records leasing restrictions. Reserve study projects future capital needs — underfunded reserves predict special assessments.