Yields sets out the calculations behind rental returns: gross yield, net yield, cash-on-cash return, and the expense lines separating them, including voids, management, insurance, repairs and tax. Worked examples use realistic figures. For investors comparing properties and testing whether an advertised return holds up under scrutiny.
Cap rate is net operating income divided by price, and what counts as good depends on asset class, market tier, financing costs, and the spread over the risk-free rate — all four of which move.
Yuki Tanaka
Three formulas answer three different questions about a rental property, and only one of them moves when mortgage rates do.
Yuki Tanaka