term1 Definition1term2 Definition2term3 Definition3
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Return
Return is total income, both direct cash flow and indirect benefits such as depreciation and appreciation
Leverage
Using borrowed money (financing) to yield higher returns
Appreciation
The increace in property value
Income property
Properties held for producing income as well as for a profit on its sale
Cash flow
Spendable income generated from an income property
Pyramiding
The practice of holding and refinancing property, using its equity and appreciation buildup, rather than selling or exchanging already-owned properties and an investors holdings can be increased without investment of any additional capital
Exchange
Capital gains taxation deferred by a like-kind property when capital gains when completely used to cover second property
Capital gains
A taxable profit on an investment; in real estate, its the difference between the adjusted basis of property and its net selling price
Basis
The investors initial cost for the real estate
Adjusted basis
Is the capital gain taxable as income
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