- 1% RuleThe 1% Rule is the rent to expense ratio a property must have in order to produce positive cash flow. Rent on an investment property must be at(...) Read More
- 2% RuleThe 2% rule suggests that a rental property is a good investment if the money from rent each month is equal to or greater than 2% of the(...) Read More
- 1031 ExchangeA 1031 Exchange is an investment strategy that allows investors to defer paying capital gains taxes on an investment property when it is sold.(...) Read More
- A/CAn abbreviation for air conditioner or air conditioning. Also an abbreviation for Alternating Current, an electric current which periodically(...) Read More
- A/C CondenserThe outside fan unit of the Air Conditioning system. It removes the heat from the freon gas and converts the gas back into a liquid and pumps(...) Read More
- A/C DisconnectThe main electrical ON-OFF switch near the A/C Condenser. Read More
- AbandonmentThe surrender or relinquishment of a real estate property, including a piece of land or a housing unit. Read More
- AbatementAn official reduction, allowance or rebate. An abatement pro rata is a proportionate reduction of the amount of each of a number of debts or(...) Read More
- Ability to RepayThe financial capacity to make good on a debt. The requirement that mortgage originators substantiate that potential borrowers can afford the(...) Read More
- Absentee OwnerAn individual or corporation that legally owns a particular property without occupying it or actively managing it. This does not always mean the(...) Read More
- Absorption RateThe proportion of newly completed units that are or have been leased, usually over a given period (such as 3 months). Read More
- AbsorptionsThe net change in the total number of apartment homes leased. Read More
- Abstract of TitleA document summarizing activity associated with the title of a property. In chronological order, begins with when the property was first(...) Read More
- AbstracterThe person or company engaged in making abstracts. Read More
- AbstractingThe process of making and compiling an abstract. Read More
- Acceleration ClauseA provision of a mortgage or note which provides that the entire outstanding balance will become due and payable in the event of default. Read More
- Access RightsThe right of ingress to and egress from a property that abuts upon an existing street or highway. Details will be shown on Certificates of Title(...) Read More
- AccessibilityThe degree to which a certain building or site allows access to persons with disabilities. Read More
- Accessory Dwelling UnitIt is used to designate any additional legal residence that is incorporated into a single-family home. Read More
- Accredited InvestorA type of real estate investor that is allowed to invest in riskier investments. The most common qualifications are having a $1M net worth or(...) Read More
- Accrued InterestInterest earned but not yet paid. Read More
- Accumulated DepreciationThe asset’s depreciation from the acquisition phase to the latest depreciation results in dollar amount. Read More
- Acquisition CostThe total cost of acquiring an asset. This may include stamp duty, legal fees, building report, valuation fees, survey fees and any other due(...) Read More
- Acrylic PaintA type of paint with high pigment levels and good color retention. Acrylic paint is made up of a synthetic resin and is similar to latex. It is(...) Read More
- ActiveAn active status means the property is currently available for sale. Read More
- Active ContingentActive contingent is a status provided to a property listing when the seller has accepted an offer from a buyer, given that certain(...) Read More
- Active InvestingA method that requires extensive effort and time from the investor who is directly involved in the investment. An active investor will typically(...) Read More
- Actual Cash ValueThe price which property will realize on the open market, after all reasonable efforts have been made to secure a purchaser who will pay the(...) Read More
- Actual dimensionsThe exact measurement of a piece of lumber. For instance, a 2X4 is actually 1 ½-inches thick and 3 ½-inches wide. Read More
- Ad ValoremLiterally means "in proportion to value". A tax duty or fee applied at the proportional rate. The total amount payable thus varies with the(...) Read More
- ADA CompliantRefers to meeting accessible Design Standards imposed by the ADA (Americans with Disability Act, the federal legislation that mandates goods,(...) Read More
- AdaptorA fitting used to join pipes and other plumbing components. Read More
- AddendumAn addendum is an additional document that can modify an original lease or purchase agreement. Read More
- AdditionAn addition includes either new rooms or square footage that is added to a home. Read More
- Adjustable Rate MortgageMortgage for which the interest rate adjusts periodically up or down through a set index. The initial interest rate usually is lower than that(...) Read More
- Adjustable ShelvesMost wall cabinets over 12 or 15 inches in height have shelves that can be adjusted to various heights depending on what you plan to place in(...) Read More
- Adjusted BasisThe original cost of a property plus the cost of any improvements less depreciation. Read More
- Adjusted Gross IncomeGross income of a building if fully rented, less an allowance for estimated vacancies. Read More
- Adjustment IntervalDenotes the length of time between changes in the interest rate for an adjustable-rate mortgage. Typical adjustment intervals are six months and(...) Read More
- Adverse PossessionThe unauthorized occupation of land belonging to another, by a person who does not have the consent of the owner. Said occupier is said to hold(...) Read More