Plain-English explanation
What the lender's return would be if they foreclosed. Banks target 9-10%+.
Examples
- $24k NOI on $300k loan = 8% debt yield.
Common mistakes
- Confusing debt yield with cap rate.
Related questions
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ROI Metrics
Debt Yield
NOI divided by total loan amount, a financing-risk metric independent of rate.
Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice
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