Terms, explained.

A screen: monthly rent should be at least 1% of the purchase price. A quick filter only; it ignores your actual costs.

Example: A $200,000 property should rent for $2,000 or more a month to pass this screen.

A screen: operating expenses (not the mortgage) tend to run about half of collected rent.

Example: If rent is $2,000 a month, expect roughly $1,000 a month in operating costs before the mortgage.

How each payment is split between interest and principal over time. Early payments are mostly interest.

Example: On a $300,000 30-year loan at 6.5%, the payment is about $1,896. In the first month roughly $1,625 is interest and $271 is principal.

The return on investment scaled to a 12-month rate, so a 6-month project and a 12-month project can be compared fairly.

A lender-ordered estimate of the property's value. If it comes in below your ARV estimate, the new loan is smaller and you may leave more cash in the deal.

Example: You estimated ARV at $215,000, but the appraisal comes in 10% lower at $193,500. A 75% loan is $145,125 instead of $161,250, so you get $16,125 less cash back.

If you own the property: A lender's appraisal and an investor's ARV can differ. Neither is automatically right.

How much a property's value rises per year. Long-term results depend on it heavily, and it is a guess, not a promise.

Example: At 3% a year, a $300,000 home gains about $9,000 in its first year. Real markets can be flat or fall.

After-repair value: what the property should sell for once repairs are finished, based on recent sales of similar nearby homes.

ARV is an estimate of what the home would sell for after the repairs are done, in good condition, to a typical buyer. It is not what the house is worth today in its current condition, and it is not a formal appraisal.

It is usually based on comps: recent sales of similar homes nearby, ideally the same neighborhood, similar size, age and condition, and sold within the last few months. Different people can reasonably land on different numbers.

ARV is the number that most often decides whether a deal works, because everything else is measured against it.

Example: A run-down 3-bedroom house has three similar renovated homes nearby that sold for $195,000, $200,000 and $205,000. The ARV estimate is about $200,000, even though the house today might sell for far less.

On this site: You enter it. It is an estimate, and it is the number that most often decides whether a deal works, so test a lower figure.

If you own the property: ARV is someone's opinion, and you can check it. Look up recent sales of similar homes near you, ask a local agent for a market opinion (often free), or pay for an appraisal. If you think the ARV used for an offer is too low, say so and ask to see the comps behind it.

A screening rule: pay no more than 70% of ARV minus repair costs. The leftover 30% is meant to cover the buyer's costs, carrying time and profit.

The ARV rule is a formula investors use to decide the most they can pay for a property that needs work. They take a percentage of the ARV (70% is the common starting point) and subtract the cost of repairs. In our wholesale calculator we also subtract the wholesaler's fee.

Why not simply pay the full ARV minus repairs? Because the investor who ends up fixing and reselling the house has costs beyond the purchase and the repairs: closing costs when they buy and sell, agent commissions, loan interest, taxes and insurance while the work is under way, and the risk that repairs cost more or the house sells for less than hoped. The rule keeps back the other 30% of ARV to cover those costs and the investor's profit.

The percentage is a rule of thumb, not a law and not a measure of what your home is worth. In hot markets investors sometimes use 75% to 80%; in slow markets or on risky projects they may use 60% to 65%. You can change it in the calculator and see the result.

Example: ARV $200,000 × 70% = $140,000. Subtract repairs of $30,000 and a wholesaler fee of $10,000, and the maximum allowable offer is $100,000. The end buyer pays $110,000 in total and then spends $30,000 on repairs. They are left with $60,000 (30% of ARV) to cover their selling costs, carrying costs and profit.

On this site: A rule of thumb, not a law. Some markets and deals work above it, with less room for surprises.

If you own the property: If you are the owner, the rule is the reason an investor's offer is below what the house might sell for after repairs. The gap is not hidden profit for us: it is meant to cover repairs, the buyer's costs and time, and the risk they take. But it is still only a negotiating number. It does not mean your house is worth that little, and you are free to counter, ask for other offers, or sell traditionally. Compare any offer to what you would net from repairing and listing with an agent, after paying for repairs, commissions and the time it takes. The tool below the calculator shows that comparison with your numbers.

Selling a property in its current condition, with no repairs and usually no repair credits to the buyer.

Example: A buyer agrees to purchase for $100,000 as-is. You make no repairs and give no repair credit, and the buyer takes on any problems the inspection finds.

If you own the property: As-is usually saves you the cost and effort of repairs, but the price reflects that. Compare it with what you would net after fixing the house and selling through an agent.

The fee a wholesaler earns for transferring a purchase contract to an end buyer. It is added to the price the end buyer pays.

When a wholesaler signs a contract to buy your home, they gain the right to buy it at that price. They then assign (transfer) that right to an end buyer, who closes the purchase with you. The assignment fee is what the wholesaler is paid for that service, and it is paid by the end buyer at closing.

It covers real work and real risk: finding the property, marketing to find a buyer, paying for the time and costs of deals that never close, and standing behind the contract in the meantime.

The fee is not added on top of what you receive. It is the difference between your contract price and what the end buyer pays in total. In our calculator it is subtracted from the maximum offer, so you can see exactly where it sits: owner's price + fee = total the end buyer pays.

Example: Contract price $100,000 and assignment fee $10,000: the end buyer pays $110,000 in total. You receive $100,000 either way, and the wholesaler receives $10,000. On a $200,000 ARV that fee is 5% of ARV, or 10% of your price.

If you own the property: You have every right to ask three things: Are you buying this house yourself, or will you assign the contract? Is there an assignment fee, and how much is it? Who is the end buyer? A fair wholesaler is upfront about all three. You could also try to find an end buyer yourself and keep that gap, which is why many owners compare a wholesaler's offer with a listing or with offers from other investors before they decide.

Transferring a signed purchase contract to another buyer, who then completes the purchase. The wholesaler is paid an assignment fee for passing it on.

The occupancy at which rent just covers all costs and the mortgage. The lower it is, the more cushion you have.

Example: Simplified: if full-occupancy rent is $24,000 a year and all costs plus the mortgage total $20,400, break-even occupancy is 85%. Our calculator also accounts for costs that scale with rent.

The sale price at which a flip makes exactly zero profit after all costs, including selling costs.

Example: If everything except selling costs adds up to $229,000 for a flip, you must sell for at least about $249,000 with 8% selling costs: $229,000 ÷ (1 − 0.08) ≈ $248,913.

Buy, Rehab, Rent, Refinance, Repeat: buy a rundown property, renovate it, rent it out, then refinance to pull your cash back out and reuse it on the next deal.

Example: Buy for $120,000 and rehab for $35,000: $155,000 in. If the ARV is $215,000, a 75% refinance gives a $161,250 loan, which repays the $155,000 (before closing costs).

Official permission from the local government to build or renovate. Permit records show what work was approved, when, and often its value and the contractor.

A strategy of buying a property to keep and rent out for years, rather than fixing it up and selling it quickly.

Capitalization rate: a property's net operating income for a year (the rent collected minus the costs of running it, not counting any mortgage) divided by its purchase price. It shows what the property earns before financing, so you can compare properties no matter how each one is paid for.

Example: NOI of $13,560 ÷ a $200,000 price = 6.78%.

Capital expenditures: big, infrequent replacements such as a roof, furnace or water heater. A CapEx reserve is money set aside each month so those bills don't surprise your cash flow.

Example: Setting aside 5% of $2,000 monthly rent is $100 a month, or $1,200 a year toward a future roof or furnace.

The profit on a sale above your basis, after selling costs. This is the amount that can be taxed.

Example: Sell for $300,000 with $21,000 of selling costs: $279,000 − a $240,000 basis = a $39,000 gain.

The total of holding costs per month. In the deal check, every extra month of project time costs about one month of carry.

Example: At $1,200 a month of carry, every extra month of project time costs $1,200 out of profit.

A buyer who pays without a mortgage, which usually means a faster, simpler closing.

Money left each month after all expenses and the mortgage payment. Negative means you pay to hold the property.

Example: NOI of $13,560 minus $10,800 of yearly mortgage payments ($900 a month) leaves $2,760 a year, or $230 a month.

The cash you actually put into the deal out of your own pocket: down payment, closing costs and repairs.

The cash you pocket in a year after all expenses and loan payments (called cash flow) divided by the cash you actually put into the deal: the down payment, closing costs and repairs. It measures the return on your own money, not on the whole price.

Example: $2,760 of yearly cash flow ÷ $55,000 of cash invested = 5.0%.

On this site: Many buy-and-hold investors look for roughly 8% or more, depending on their market and alternatives.

Replacing your loan with a bigger one and keeping the difference as cash. In BRRRR it repays the purchase loan and returns your invested cash.

The final step of a sale, when ownership transfers, the paperwork is signed and the money changes hands.

Fees paid at the closing of a purchase or refinance: lender, title, appraisal, recording and similar charges.

Example: At 3% of a $300,000 purchase, closing costs are $9,000.

A recorded finding that a property breaks a local rule on safety or upkeep, such as unsafe stairs or an overgrown lot.

The fee paid to the real estate agents on a sale, usually a percentage of the price, split between the seller's and buyer's agents.

Example: 5% of a $350,000 sale is $17,500, split between the seller's and buyer's agents. Rates are negotiable.

Recent sales of similar homes nearby, used to estimate what a property is worth. The closer they match in size, age, condition and location, the more reliable the estimate.

Appraisers and agents adjust comps for differences, such as an extra bedroom or a larger lot. A few well-chosen comps beat many loose ones.

Example: Three renovated 3-bedroom homes within half a mile sold in the last 4 months for $195,000, $200,000 and $205,000. The middle price, $200,000, is a reasonable starting ARV.

If you own the property: You can find recent sales on county records and many real estate sites. Compare homes of similar size and condition, not just the same street.

Declared unsafe to occupy by the city or township, usually after an inspection. A condemned building often needs major repair or demolition.

Our 0-100 estimate of how well a record is supported by its source. Records based on lists that can lag a sale score lower, until the outcome is verified.

Example: A parcel from an upset sale list published before the sale scores 60, because the property may since have sold. A parcel from the county's repository list scores 65.

Extra money set aside in a budget for surprises, usually a percentage added on top, such as 10% to 15% of a repair budget.

The starting value used to figure taxable gain on a sale.

Example: An inherited house worth $240,000 on the date of death has a basis of $240,000.

The rules-based review under each calculator's result. It reads your own inputs, compares them with common rules of thumb and lists what is strong, what is risky and what would change the answer.

The deal check reads the numbers you entered and the results the calculator produced, and compares them with commonly used rules of thumb for that type of deal. It lists what looks strong, what looks risky, and what change would move the answer, with figures taken from your own inputs.

It is rules-based: the same inputs always produce the same result, and every threshold is spelled out in these terms. It is not a prediction, an appraisal or advice. Markets, lenders and investors differ, so treat it as a second look, not a decision.

Example: A flip with 18% profit margin that still makes money after a rehab overrun and 2 extra months scores in the Strong range. The same flip with a 6% margin that turns into a loss under the stress test scores in the Thin range.

On this site: The 0-100 temperature runs from Pass to Strong. It is an estimate from your inputs, not advice, and it is computed by fixed rules rather than a prediction.

Repairs that have been put off for a long time and have piled up.

The building on the parcel has been torn down, so it is now vacant land.

Two sales in a row, usually on the same day: a wholesaler buys the property, then immediately sells it to the end buyer. The end buyer pays the wholesaler directly instead of an assignment fee.

The part of the price you pay in cash at closing. The rest is the loan.

Example: On a $300,000 home, 20% down is $60,000 (no PMI) and 3.5% down is $10,500.

Debt service coverage ratio: the property's yearly net operating income (rent minus running costs, before any mortgage) divided by its yearly loan payments. Above 1.0 the rent covers the loan. Investor lenders commonly want about 1.2 to 1.25 so there is a safety cushion.

Example: NOI of $13,560 ÷ $10,800 of yearly loan payments = 1.26. Above 1.25 is comfortable for many lenders; below 1.0 means the rent doesn't cover the loan.

On this site: Shown in the rental and BRRRR calculators.

The investor who actually closes on the property after a wholesaler assigns the contract. Usually someone who will repair and resell it, or keep it as a rental.

Example: A rehabber agrees to pay $110,000 for a house, which includes a $10,000 assignment fee to the wholesaler, then spends $30,000 on repairs and resells it.

If you own the property: Ask who the end buyer is and what they plan to do with the property. You are not required to accept an offer from anyone you are not comfortable with.

A buyer's legal right in a property once a purchase contract is signed, before they actually own it. Wholesalers sometimes sell this right instead of the house itself.

The part of a property you own outright: its value minus what you still owe on it.

Total cash you get back (yearly cash flow plus the money from selling) divided by the cash you put in. 2.0x means you doubled your money.

Example: You invest $50,000 and receive $125,000 in total cash flow and sale proceeds. The equity multiple is 2.5x.

An account the lender uses to collect part of your monthly payment and pay your property tax and insurance bills for you.

A legal process a landlord uses to remove a tenant, usually for unpaid rent or breaking the lease.

The date of the source document behind a record, so you can judge how fresh it is.

Operating expenses divided by collected rent.

Example: $9,000 of operating expenses ÷ $22,560 of collected rent is about 40%.

Insurance on government-backed low-down-payment loans, often with an upfront charge plus a monthly premium. Depending on the loan, it can stay for the life of the loan rather than dropping off.

Example: A 1.75% upfront premium on a $300,000 loan is $5,250, often added to the loan balance, plus a monthly premium on top.

On this site: The loan comparison lets you mark whether insurance drops off or stays.

How a purchase is paid for, usually the loan you take out to cover what you don't pay in cash.

A home that needs repairs or renovation, usually priced below similar updated homes.

When a lender takes legal action to take and sell a property because the owner stopped paying the mortgage.

Gross rent multiplier: the purchase price divided by a year of rent before any expenses. A lower number means you pay less for each dollar of rent.

Example: A $200,000 property that rents for $24,000 a year has a GRM of 8.3.

Income before taxes and other deductions are taken out. Lenders measure affordability against gross income, not take-home pay.

A short-term, higher-interest loan from a private lender, based mostly on the property. Common for flips and BRRRR purchases.

Example: A $150,000 purchase with an 85% loan is $127,500. At 11% interest-only, interest is $1,168.75 a month, plus 2 points ($2,550) at closing.

A monthly fee some communities charge for shared upkeep such as landscaping, roofs or amenities.

What it costs to own a property while you work on it: taxes, insurance, utilities and loan interest.

Example: Taxes $300, insurance $100, utilities $150 and loan interest $650 a month total $1,200 a month. A 6-month project costs $7,200 to hold.

Living in one unit of a small multi-unit property and renting the others to cover your housing cost.

Example: Owning a fourplex costs $2,800 a month. The three other units rent for $1,100 each at 94% occupancy, which brings in $3,102. $2,800 − $3,102 = −$302, so you live there free and keep $302.

Your total monthly housing payment divided by your gross monthly income (income before taxes). Lenders commonly use about 28% as a guide.

Example: $2,321 of housing cost ÷ $8,500 of gross monthly income = 27.3%.

The cost of borrowing money, charged by the lender as a percentage of what you owe.

The yearly cost of a loan as a percentage of what you owe. A 6% rate on $100,000 costs about $6,000 in interest in the first year.

A loan where you pay only the interest each month and none of the balance, so what you owe doesn't shrink until the loan ends or is refinanced. Common for short-term hard money loans.

Internal rate of return: one yearly percentage that sums up the whole investment, counting when each dollar goes in and comes out, including the money from the eventual sale. It leans heavily on the sale price you assume.

A public or nonprofit organization that holds vacant or abandoned properties and sells them so they can be put back into use.

The owner of a property that is rented out to tenants.

A property or owner record that a public source shows may be a sales opportunity, with the evidence attached.

If you own the property: A lead is a record that points to a property because of something public, like a tax sale list. It is not a claim that the owner wants to sell or has done anything wrong.

The bank or company that loans you the money.

A legal claim against a property for a debt, such as unpaid taxes or a contractor bill. It must be paid or resolved at sale.

The number of years over which the loan is scheduled to be repaid, such as 15 or 30.

Loan-to-value: the loan balance divided by the property's value. A 75% LTV on a $200,000 value means a $150,000 loan.

Example: A $150,000 loan on a $200,000 value is 75% LTV.

Maximum allowable offer: the most you can pay for a property and still reach your profit target.

MAO is the ceiling on what you can offer and still hit your numbers. A wholesaler or investor normally opens at or below it so there is room to negotiate.

Formula used here: MAO = ARV × rule % − repairs − assignment fee.

Example: ARV $200,000, rule 70%, repairs $30,000, fee $10,000: $140,000 − $30,000 − $10,000 = $100,000.

On this site: Wholesale MAO = ARV × rule % − repairs − your assignment fee.

If you own the property: An offer is a starting point, not a verdict on your home's value. Ask any buyer how they arrived at their number. A trustworthy one will show you the ARV, the repair estimate and their fee.

A legal claim a contractor or supplier files against a property when they haven't been paid for work done on it.

A loan used to buy a home. The home itself is the lender's security: if you stop paying, the lender can take it.

A charge that protects the lender when you put little money down. On conventional loans it is called PMI; on government-backed loans it goes by other names and can last longer.

An owner with a reason to sell quickly or without making repairs, such as an inherited house, back taxes or repairs they can't afford. Investors target them because speed and certainty can matter more to them than top price.

If you own the property: Having a reason to sell quickly does not mean you should accept the first low offer. Speed and certainty have value, but compare what you would net each way, and take time to get at least one other opinion.

What you actually receive at closing after commissions, taxes, fees, repairs and loan payoffs.

Example: Sale price $350,000, minus commissions $17,500, transfer tax $3,500, title and escrow $1,500, repairs $3,000, prorations $1,200 and a $180,000 payoff leaves $143,300.

If you own the property: Net proceeds is the number that matters to you, not the sale price. Compare any offer on what you will actually receive, after repairs, commissions, closing costs and the time you will wait.

What is left from the eventual sale after paying off the loan and the costs of selling, before counting the cash you put in.

For the buyer: home value after selling costs, minus the loan, plus any invested savings. For the renter: the invested savings, including the cash a buyer would have spent upfront.

Net operating income: the rent you collect in a year (after allowing for empty months) minus the yearly cost of running the property, which means property tax, insurance, repairs, management and reserves. The mortgage payment is not included, so it shows what the property earns on its own.

Example: Rent of $2,000 a month is $24,000 a year. At 6% vacancy you collect $22,560. Subtract $9,000 of operating expenses and NOI is $13,560.

A property whose owner doesn't live there, such as a rental.

The share of time a rental has a tenant paying rent. 94% occupancy is the same as 6% vacancy.

A property that is for sale but isn't publicly listed on the main listing websites.

Many low-down-payment loans require you to live in the property, often for about a year, in exchange for better terms.

The county's unique ID for a piece of property. We use it as the stable key for a record, so the same property from two sources is combined.

The amount needed to pay a loan off completely, including interest owed up to that day.

Principal, interest, taxes and insurance: the core monthly cost of owning a financed home. Add any HOA fee and mortgage insurance for the full payment.

Example: Principal and interest $1,896 + taxes $300 + insurance $125 = $2,321 a month.

Private mortgage insurance: insurance that protects the lender (not you) when you put down less than 20% on a conventional loan. You pay for it monthly along with your mortgage.

Example: 10% down on $300,000 means a $270,000 loan. At a 0.6% yearly PMI rate that is $1,620 a year, or $135 a month.

The point at which PMI stops. On many conventional loans you can request removal once your balance reaches 80% of the home's original value, and it ends automatically at about 78% on schedule. Lender rules vary.

PMI is meant to protect the lender while you have little equity, so it is not meant to last forever. On many conventional loans you can ask the lender to remove it once your balance reaches 80% of the home's original value, and it must end automatically at about 78% if you are paying on schedule.

Extra principal payments get you there sooner. A rise in the home's value can too, but lenders often require an appraisal and have their own rules. Some loan types, including many FHA-style loans, handle mortgage insurance differently and may keep it for the life of the loan.

Our calculators estimate the month your balance first reaches 80% of the purchase price on the normal payment schedule. Your lender's rules and your loan documents are what actually apply.

Example: On a $300,000 purchase, 80% is $240,000. Once your balance reaches $240,000 on schedule you can usually ask to remove PMI, and the automatic cutoff is at 78%, which is $234,000.

On this site: We estimate the month your balance first falls to 80% of the price on the normal schedule.

A fee paid to the lender at closing. One point equals 1% of the loan amount.

Example: 2 points on a $127,500 loan is $2,550.

The amount you borrowed, or the part of it you still owe. Paying principal reduces your balance; paying interest is the cost of borrowing.

The part of the payment that repays the loan (principal) and pays the lender (interest), not counting taxes or insurance.

The court process for settling a deceased person's estate. A property in probate is often sold or transferred by the estate.

Profit divided by the after-repair value. A quick way to compare flips of different sizes.

Example: $36,000 profit on a $240,000 ARV is a 15% margin.

Splitting ongoing bills, such as property tax, fairly between buyer and seller based on the closing date.

Example: Property tax is $3,600 a year ($300 a month). If you owned the house for 4 months of the period the bill covers but haven't paid it, you credit the buyer $1,200.

Documents that government bodies make available to the public. We keep only what a source publishes, link to it, and never add private data.

If you own the property: We keep only what a government source published, show the source and date, and do not add private contact details.

A specific public-record fact that makes a property a lead, such as appearing on a tax sale list. A record can carry several.

Example: A parcel on the county's upset sale list carries the signal "tax upset sale". If it also appears on the repository list, it carries "tax repository" as well.

A licensed professional who helps people buy or sell homes, usually paid a commission when the sale closes.

Replacing your current loan with a new one, usually to get a lower interest rate, change the loan length, or take cash out.

How long it takes the monthly savings to pay back the closing costs.

Example: $4,500 of closing costs ÷ $150 a month of savings = 30 months to break even.

On this site: Closing costs ÷ monthly payment savings.

The estimated cost of repairs and renovation. Costs commonly run over, so many investors add a contingency.

The rehab budget is the estimated cost of repairs and renovation. Estimates commonly come in under the final bill, so many investors add a contingency of 10% to 15%, and our deal check stress-tests exactly that.

Example: A $30,000 rehab estimate that runs 15% over becomes $34,500.

If you own the property: If an offer is based on a big repair estimate, ask to see the line items or get your own contractor's number. Repair estimates are one of the easiest figures to overstate.

Monthly rent divided by the purchase price. The 1% rule looks for at least 1%.

Real estate owned: a property a bank took back after a foreclosure that didn't sell at auction. The bank then lists it for sale.

Properties that did not sell at a tax sale. The county keeps them and may sell them later, often through a bid process.

If you own the property: Appearing on the repository list means the county holds a claim on the property from a tax sale that found no buyer. Contact the county Tax Claim Bureau for the current status.

Return on investment: profit divided by the cash you put in.

Example: Profit of $30,000 on $60,000 of your own cash is a 50% ROI.

On this site: Flip ROI = net profit ÷ your cash invested (total cost minus loan). Annualized ROI scales it to a 12-month rate.

A simple guideline based on common experience, not an exact law. It helps you check a number quickly, but real deals can differ.

Money the seller agrees to put toward the buyer's closing costs or repairs.

Example: A $5,000 concession to the buyer lowers your proceeds by $5,000.

The number of different qualifying signals a property has. More overlapping signals suggest more distress and are ranked higher.

Example: A property with a tax sale signal and a code violation signal has a stack score of 2.

For inherited property, the basis is generally reset to the value at the date of death. Selling soon after often triggers little tax. Rules vary, so confirm with a tax professional.

Example: A parent bought a house for $80,000. It was worth $240,000 at death, so the heir's basis is $240,000, not $80,000. Selling for $255,000 with 7% costs ($17,850) leaves $237,150, which is below the basis, so there is no taxable gain.

Re-running the numbers with things going somewhat wrong to see if the deal survives.

Example: A flip with $40,000 projected profit, a $40,000 rehab and $1,500 monthly carry: 15% rehab overrun = $6,000, and 2 extra months = $3,000. Stress-test profit = $40,000 − $6,000 − $3,000 = $31,000.

On this site: Flips: rehab 15% over and 2 extra months. Rentals: higher vacancy (at least 12%). BRRRR: appraisal 10% below your ARV.

Dividing a piece of land into smaller lots that can be sold or built on separately.

The county office that collects delinquent real estate taxes and runs tax sales.

The address where the county sends the property's tax bill. If it differs from the property's own address, the owner may live somewhere else.

A person who rents and lives in a property and pays the owner rent.

Exclusive access to one county's feed for one role. Each county has one investor seat and one realtor seat.

All your monthly debt payments, including the new housing payment, divided by gross monthly income (income before taxes). Lenders commonly use about 36% as a guide, sometimes higher. Also called debt-to-income, or DTI.

Example: ($2,321 housing + $600 other debts) ÷ $8,500 gross monthly income = 34.4%.

Your total profit so far: the cash flow collected plus the equity you own, minus the cash you put in.

Everything you would end up with over the holding period (all the yearly cash flow plus what is left from the sale after the loan and selling costs) minus the cash you put in.

A government tax on transferring ownership. The rate depends on your state and locality.

Example: At 1% of $350,000, transfer tax is $3,500. Rates vary widely by state, county and city.

To check a deal's numbers carefully to decide whether it is worth doing.

A county tax claim auction of properties with unpaid taxes. Bidding opens at the amount owed, and the owner can sometimes redeem before the sale.

The sale is held by the county's Tax Claim Bureau. Properties are advertised in advance, and an owner can often stop a sale by paying what is owed before it happens.

If you own the property: Appearing on a list means taxes are owed, not that the property is definitely for sale or that the owner did something wrong. If it is your property, contact the county Tax Claim Bureau about your options. Our records only mirror what the county publishes, and each one links to its source.

The share of time a unit earns no rent between tenants. We reduce rent by this percentage.

Example: 6% vacancy on $24,000 of yearly rent means about $1,440 of rent you don't collect.

Where a record is in review: Discovered (found in a source), Review, Qualified, Rejected or Monitor.

Putting a property under contract and assigning that contract to another buyer for a fee, without buying it yourself.

A wholesaler finds a property, signs a contract with the owner to buy it at an agreed price, and then passes that contract to another buyer for a fee. The wholesaler usually does not take ownership, make repairs or live in the property.

They are paid only if the sale closes. If the end buyer backs out or the deal falls apart, the wholesaler earns nothing, which is part of why the fee exists.

There are two common ways to do it. In an assignment, the wholesaler transfers their contract and the end buyer closes with the owner directly. In a double close, the wholesaler actually buys the house and immediately sells it to the end buyer, so the end buyer pays the wholesaler instead of an assignment fee.

Example: You agree to sell your house for $100,000. The wholesaler finds an investor who will pay $110,000 for it. The investor closes with you at $100,000, and the extra $10,000 goes to the wholesaler.

If you own the property: A wholesaler works for themselves, not for you, unless they are a licensed agent who tells you they are representing you. You can say no, ask for other offers, list with an agent, or get your own opinion of value. Rules for wholesaling differ by state and some states require licensing or disclosure, so check yours and consider a real estate attorney before you sign.

Local rules about how land can be used, for example single-family homes only, or apartments allowed.