Platform · Glossary
Total investment.
Purchase price plus closing costs plus make-ready. The in-product tooltip reads: "Estimated total invested capital including down payment and upfront costs."
Total Investment = Purchase Price + Closing Costs + Make-ready
Why this is the right denominator
Yield calculations divide income by what was invested, not by what was listed. A property listed at $300,000 that requires $9,000 of closing costs and $15,000 of make-ready required $324,000 of total investment, not $300,000. Computing returns against $300,000 overstates yield by about 8%.
This isn't a small distinction. Compounded over a 10-year hold, an 8% overstatement in starting yield turns into meaningful differences in projected outcomes.
Total investment vs. capital
These overlap but are not identical:
- Total investment = price + closing + make-ready (the deal's all-in cost)
- Capital = your equity contribution to that total (down payment + closing + make-ready, without the financed portion of price)
You divide cash flow by capital to get cash-on-cash return. Different numbers serve different ratios.