# {Tutorial: Articles}

The following article tutorials have been written to help you understand the nuances of real estate investing. Feel free to share.

## Formulations

• Break-Even Ratio (BER)
The ratio often used by lenders when trying to decide whether or not to underwrite an investment property loan...
• Capitalization Rate
The popular return used by analysts to measure an asset's financial performance and make similar-type property value comparisons...
• Cash Flow
A fundamental look at real estate investment property cash flow for those of you new to real estate investing...
• Cash-on-Cash Return (CoC)
Cash-on-Cash, the popular real estate investing return, is explained including its meaning, shortcoming, and formulation...
• Debt Coverage Ratio (DCR)
Debt coverage ratio (DCR) is explained for those engaged in real estate investing who might not understand its purpose and formulation...
• Gross Rent Multiplier (GRM)
A quick and easy way to determine whether or not a property is priced in line with other similar-type properties...
• Internal Rate of Return (IRR)
The time value computation that shows the ratio between future cash flows and initial cash investment as a percentage...
• IRR, MIRR, FMRR
The formulations for internal rate of return, modified internal rate of return, and financial management rate of return are explained...
• Loan-to-Value (LTV) Ratio
A computation related to mortgages that lenders use when financing investment property as a measurement of their financial risk...
• Maximum Purchase Price
A calculation investors can make to determine the maximum price they can pay for an income property to at least break-even and avoid a negative cash flow...
• Net Present Value (NPV)
Net present value is explained along with its formulation and use in real estate investing...
• Payback Ratio
The benefit of calculating the payback ratio during a real estate analysis is explained with formula...
• Profitability Index
The time value computation that shows the 'proportion' of dollars returned to dollars invested rather than the amount...
• Sinking Fund Factor
Know the amount you you must start setting aside on a regular basis now to cover a capital expenditure scheduled in the future...

## Tax Matters

• Annual Depreciation Allowance
How to figure the annual depreciation allowance the IRS permits real estate investors to write off as a tax deduction for their residential and commercial investment real estate properties...
• Recapture Tax
A look at the depreciation recapture tax real estate investors might owe the IRS when they sell their income property...

## Analysis

• Financial Leverage
Financial leverage explained and how it can impact a real estate investor's returns and profitability...
• Scenario Analysis
The scenario analysis is explained so you know how to use it to benefit your next investment real estate evaluation...
• Sensitivity Analysis
Changing one variable at a time over a possible range of outcomes in order to evaluate the effect of that change...

## Reports

• The APOD
Discover why the APOD is used by real estate investors to examine the annual property operating data of potential real estate investment properties... or watch the video.
• The Proforma Income Statement
How a proforma income statement is created to project rental property revenues and expenses that real estate investors use to forecast and evaluate its financial performance over time...