Horseshoe Bend Economic Development Council

06/16/2026

06/16/2026

Fisherman’s Park June 13, 2026

06/16/2026

Fisherman’s Park

06/16/2026

Always nice to get visitors:)

06/11/2026

🏡📊 Real Estate Investing 101: Four Numbers Every Investor Should Know

When analyzing rental properties, revenue is nice... but metrics tell the real story. 👇

1️⃣ **GRM (Gross Rent Multiplier)**
💰 Property Price ÷ Gross Annual Income

This is a quick way to compare properties. If two homes generate similar rental income, the property with the **lower GRM** is usually the better value.

🎯 Goal: **Lower is Better**

2️⃣ **NOI (Net Operating Income)**
📈 Gross Income − Operating Expenses

Be honest with your numbers. Subtract:
✅ Property Taxes
✅ Insurance
✅ Maintenance
✅ Management Fees
✅ Other Operating Costs

The result is what the property generates **before mortgage payments**.

🎯 Goal: **Higher is Better**

3️⃣ **Cap Rate (Capitalization Rate)**
📊 NOI ÷ Property Price

Think of this as the property's return if you paid cash. It allows investors to compare opportunities regardless of financing.

🎯 Goal: **Higher is Better**

4️⃣ **Cash-on-Cash Return (CoC)**
💵 Annual Cash Flow ÷ Total Cash Invested

This measures the return on the actual dollars you invested out of pocket.

For investors trying to stay around a ~$100,000 all-in acquisition budget, this is often the most important metric because it measures real-world liquidity and performance.

🎯 Goal: **Maximum Immediate ROI**

📌 Revenue is vanity.
📌 Profit is sanity.
📌 Cash flow is reality.

Before you fall in love with a property, make sure the numbers love you back. 😉