Net Yield

Plain-English explanation

Effectively the cap rate or yield on cost depending on denominator.

Examples

• Same as cap rate when using market value as denominator.

Common mistakes

• Conflating gross yield and net yield.

Related questions

• What is a good cash-on-cash return?
• How do I analyze a multifamily deal?
• What is a good cap rate?
• How do I underwrite a multifamily deal?
• Should I focus on cap rate or cash-on-cash for multifamily?
• What's the difference between cash flow and cap rate?