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Rental investing dictionary, explained like you're 10

NOI, cap rate, DSCR, rent roll… Type a word in English or Vietnamese, accents optional. Each term has a Bay Area example and the mistake people make.

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General info, not tax, legal or loan advice. Examples use round numbers to show the idea, not market quotes. Ranges marked "estimate" are industry practice. Ask a CPA, lender or attorney before you sign.

Common mistake: "Cap rate is my return." Not if you have a loan. Cap rate ignores the mortgage. In the Bay Area cap rates sit near 4–5% while loans cost 7%+, so the same building can cash flow for an all-cash buyer and lose money every month for someone with 25% down. Look at cash flow and DSCR too.

Next steps

  1. Run one property: cash flow, cap rate, cash-on-cash in T146.
  2. How much can you pay for it? T260.
  3. What it really costs to run each year: T261.
  4. Which loan fits, and how much cash you need: T262.
  5. Rent rules before you raise anything: T55 and T53.
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