Understanding Real Estate Investing in Less Than Five Minutes

Cash Flow: What do I make per month?
Your property's net monthly income. Simple and powerful. We named it simply Address Income®.

• Formula: Monthly Rent – Expenses = Net Monthly Income

• Expenses include taxes, insurance, maintenance, and property management.

• This is your bottom line — the real money that ends up in your pocket.

• We calculate this for every home, every day.

Cap Rate: The Great Equalizer
A fast way to compare one property to another.

• Formula: Annual Income ÷ Purchase Price = Cap Rate

• Cap rate tells you the annual return on the initial investment.

• It’s the key to spotting which deals stand out.

• The higher the cap rate, the better the return on your investment.

• We calculate this automatically across the market.