Variable	Definition
Address	Municipal address of property.
Amortization Term	The term in years, upon which the loan payment is calculated.
Annual Vacancy (Days)	Anticipated days the property will be vacant between turnover of tenants.
Asset Appreciation	Annual growth rate of the total value of the home. Determined by capital markets environment, nearby sales, and housing demand.
Average Annual Rate of Return	Rate of return ratio indicating the comprehensive return earned on the total equity invested in a deal. Includes principal paydown of the loan as well as property appreciation.
Average Cash-on-Cash Return	Rate of return ratio indicating the total annual cash earned on the total equity invested in a deal.
Bed/Bath	Amount of bedrooms and baths at the property.
Broker Commission	Anticipated costs of using a real estate broker to buy and sell the property. This figure varies between markets, but is generally 3-6%.
Capital Reserves (%)	Anticipated annual amount to be saved for large capital projects such as roof replacement, etc. Capital projects do not include routine maintenance.
Closing Costs	Anticipated costs related to closing the transaction such as loan origination fees/points, municipal recording fees, transfer taxes, title/escrow fees, closing agent fees, etc.
Down Payment	The ratio upon which a borrower calculates the loan amount. For example, the down payment for a $120,000 loan for a $150,000 property would equal $30,000 or 20%.
Due Diligence Costs	Anticipated costs related to removing contingencies on the purchase agreement such as appraisals, property inspections, environmental studies, radon tests, etc.
Income Growth Assumption	Anticipated inflation rate of income associated with financial analysis.
Hold Period (Months)	Specific time period in months for the financial analysis.
Home Insurance	Annual insurance expense to protect the asset. Will be required by lender to obtain mortgage note.
Expense Growth Assumption	Anticipated inflation rate of expenses associated with financial analysis.
Investment Period	Total time in months that the analysis is covering. This is equal to the Hold Period + Renovation Period + Marketing Period.
Investment Strategy	Hold” means the property is anticipated to be purchased, operated over a time period to obtain cash flow, then sold.
Loan-To-Value (LTV)	The ratio upon which a lender calculates the loan amount**.** For example, the LTV for a $120,000 loan for a $150,000 property would equal 80%.
Lot Size	Total size of the property parcel.
Marketing Period Months	Anticipated time it will take to find a new tenant.
Net Profit from Investment	Total deal profit after paying off mortgage and selling costs.
Price	Purchase price of the property considered.
Property Management Fee	Anticipated fee to be paid for property management services. Usually calculated as a percentage of revenue.
Property Tax	Annual real estate tax liability estimated by Zillow’s algorithm and property data.
Property Tax Assessment	The amount of assessed value for a property, determined by the municipal assessor.
Property Tax Millage	The amount of tax payable per dollar of the assessed value of a property. The millage rate is based on mills", or a figure that represents the amount per $1,000 of the assessed value.
Renovation Period (Months)	Anticipated time it will take to make the asset ready for a new tenant.
Monthly Rental Rate	Anticipated cost for tenant to occupy space, usually quoted as a monthly figure.
Rental Zestimate	Monthly rent figure for area estimated by Zillow’s algorithms and owner data. Change this figure by pressing the “Edit Model” button.
Square Feet	Total size in square feet of the property.
Total Capital Required	Total dollar amount required for down payment of loan, transaction costs, and renovation budget.
Monthly Operating Cost	Anticipated monthly cost for landlord operating expenses at the property such as landscaping, utilities, etc.
Renovation Budget ($)	Total dollar amount to be spent on renovation items.