Many real estate investors look at the Cash on Cash Return (CCR), which I call the Gross Return on Equity (ROE), to determine whether a particular income property investment is worth buying. I wrote a brief article, Investing for Yield, that explains the correlation between the Capitalization Rate (CAP) and the Return on Equity (ROE).
You will learn about calculating a required CAP rate for your required yield, so you can exclude income properties that are offered at a lower CAP rate. You will learn about Leverage to Price (LTP), Leverage to Yield (LTY), Annual Debt Constant (ADC), and more!
Please give it your perusal and let me know what you think!