Cheat Sheat

r = Return
y = Cash Yield
g = Capital Growth
rf = Risk-free Rate
RP = Risk Premium
NOI = Net Operating Income
IRR = Internal Rate of Return
​OCC - Opportunity Cost of Capital
​NPV = Net Present Value
V = Value
MV = Market Value (Price most likely to sell for)
IV = Investment Value (Highest price the subject investor is willing to pay)
INF RATE = Inflation Rate
CAP RATE = Capitalization Rate
DCF = Discounted Cash Flow
CFC = Cash Flow Change
YC = Yield Change
IY = Initial Yield (Equivalent to y "Cash Yield")
L = Leverage
E = Equity
​LR = Leverage Ratio
​WACC = Weighted Average Cost of Capital
rp = Property asset return
rE = Levered equity return
rD = Debt return
​LTV = Loan-to-value ratio (loan value fraction of property value)

​FORMULAS

r = y + g​
​r = rf + RP
CAP RATE = NOI / V
​Y = NOI - CAPEX / V
Y = CAP RATE - (CAPEX / V)
G = INF RATE - Real Net Depreciation
V = L+E
LR = V / E
​rP = (1 – LTV) × rE + LTV × rD
rE = rD + (rP – rD) × LR
VACANCY RATE = # of VACANT MONTHS / (# of VACANT MONTHS + OCCUPIED MONTHS)
Assets = Liabilities + Owners’ equity
Property cash flow = Debt cash flow + Equity cash flow
r = g + y = rf + RP
​rE = rD + LR × (rP – rD)
yE = yD + LR × (yP – yD)
gE = gD + LR × (gP – gD)
RPE = RPD + LR × (RPP – RPD)
rD = yD + gD
Property asset component = Debt component + Equity component
Equity component = Debt component + Spread × Leverage ratio
​gP-gD>yP-yD
​IRR = IY + CFC + YC + Interaction