Rental Property Economics: From Gross Rent to Cash Flow

Key Takeaways

• Gross scheduled rent is a hypothesis. Effective gross income is a fact. The distance between them is vacancy plus credit loss, offset by non-rent income.
• Net operating income deliberately excludes both capital expenditures and debt service. That is the correct definition, and it is also why net operating income cannot be spent.
• A capital expenditure reserve is not optional conservatism. A schedule assigning each component an annual cost is the only defensible way to size it.
• On the hypothetical property below, the naive calculation (rent minus mortgage) shows 16,347 dollars a year. The complete calculation shows 1,013 dollars. Every dollar of the 15,334 dollar gap is traceable to a specific line.
• Cash flow and taxable income diverge by design: depreciation reduces tax without costing cash, principal repayment costs cash without reducing tax, and capital expenditures cost cash now but are recovered over decades.
• Cash-on-cash return measures spendable cash against invested cash. Total return adds principal reduction and appreciation, both real, neither of which pays a bill this year.
• When the mortgage constant exceeds the property's yield on cost, borrowing more reduces cash-on-cash return rather than raising it. Leverage is not automatically accretive.

Why Direct Ownership Needs Its Own Arithmetic

A REIT investor buys a share of a portfolio someone else operates, and the reporting arrives pre-digested: net operating income, funds from operations, occupancy, same-store growth. Swoopr covers those measures in their own right, because they are the language of listed real estate. Net operating income and cap rate each have a dedicated explainer, and the cap rate calculator runs the conversion between value, income and yield on your own inputs.

None of it tells a direct owner what they need to know, because a REIT's income statement has already absorbed the work. Somebody there decided the vacancy assumption, negotiated the insurance renewal, scheduled the roof replacement and structured the debt. A direct owner makes every one of those decisions personally, and each lands in the same account that funds the mortgage payment. What follows is the operating statement of a single property built from the top down, and it applies to a single-family rental, a duplex or a small apartment building. The dollar amounts change. The order of the subtractions does not.

From Gross Scheduled Rent to Effective Gross Income

Gross scheduled rent is what the property would collect if every unit were leased at the asking rent for all twelve months of the year. It is the number on the listing, the number in the seller's pro forma, and the number that appears in almost every casual conversation about rental property. It is also the only number in the entire statement that is not an observation.

Two deductions convert it into something real.

Vacancy is the time the unit is not producing rent. It accrues in two ways: a unit sitting empty between tenants, and the days lost turning the unit over (cleaning, painting, repairs, showings, application processing). A single-family rental with a two-year average tenancy and a six-week turn is running roughly 6 percent physical vacancy before anything goes wrong. The U.S. Census Bureau: Housing Vacancies and Homeownership (CPS/HVS) publishes rental vacancy rates nationally and by region, which is the right place to sanity-check an assumption against the market rather than against a seller's optimism.

Credit loss is rent that was billed and never collected: a tenant who stops paying, an eviction that takes months, a deposit that does not cover the damage and unpaid balance. The two are frequently combined into a single allowance, which is fine as long as the number reflects both. They are different failures with different causes, and a market with strong demand can have low vacancy and meaningful credit loss at the same time.

Other income is added back. Pet rent, parking, storage, laundry, application fees, late fees and utility reimbursements are all real revenue. They belong above the operating expense line, not netted against an expense.

A seller quoting "market rent" is quoting an opinion. For a defensible starting point, compare against actual signed leases for comparable units and against HUD User: Fair Market Rents, which publishes rent estimates by bedroom count for every metropolitan area and non-metropolitan county in the United States. Fair Market Rents serve a housing-assistance purpose rather than a market appraisal, so treat them as a reference band, not a target.

What Actually Counts as an Operating Expense?

An operating expense is a cost of keeping the property running and rented this year. The test is not whether the cost is annoying or unexpected. It is whether the spending is consumed within the period, or whether it creates or restores something with a multi-year life.

The recurring categories for a residential rental are consistent enough to list:

• Property taxes. Verifiable from the county assessor before purchase. The current owner's tax bill is not necessarily your tax bill: many jurisdictions reassess on transfer, and an owner-occupant exemption disappears when the property becomes a rental.
• Insurance. A landlord policy (often a dwelling-fire form) rather than a homeowner policy, usually with liability and sometimes loss-of-rents coverage.
• Property management. Commonly a percentage of collected income plus a separate leasing fee. Self-managing does not make this zero. It converts a cash expense into unpaid labour, and the honest comparison includes the fee either way.
• Repairs and maintenance. Fixing what breaks: a failed disposal, a leaking trap, a service call on the furnace. Recurring and small-ticket.
• Turnover and leasing. Make-ready cleaning, touch-up paint, advertising, tenant screening. Prorate it across the expected tenancy rather than booking it only in the years it happens.
• Owner-paid utilities. Whatever the lease does not push to the tenant: often trash, sometimes water and sewer, common-area lighting in a multi-unit building.
• Grounds and administration. Landscaping, snow removal, gutter cleaning, pest control, rental licensing and inspection fees, accounting, legal, bank fees, software.
• HOA dues, where they apply, and they can be large enough to decide a deal on their own.

Notice what is absent. Mortgage principal and interest, depreciation and capital expenditures are all excluded. Net operating income is calculated before every one of them, which is what makes it comparable between a property bought with cash and an identical one bought with 80 percent leverage.

The IRS: Tips on Rental Real Estate Income, Deductions and Recordkeeping guidance and IRS: Topic No. 414, Rental Income and Expenses describe how ordinary and necessary rental expenses are treated for tax purposes, and they draw the same repair-versus-improvement boundary the next section relies on.

Why a Capital Expenditure Reserve Is Not an Operating Expense

This is the line that separates an underwriting that survives contact with reality from one that does not.

A capital expenditure replaces or improves a component with a useful life measured in years or decades: a roof, a furnace, a water heater, windows, siding, a driveway, a full flooring replacement, a kitchen. The IRS: Tangible Property Final Regulations set out the framework distinguishing amounts that must be capitalized (betterments, restorations and adaptations of a unit of property) from amounts deductible as repairs and maintenance. That distinction matters for tax treatment, and it matters just as much for underwriting, for a different reason.

The underwriting reason is timing. A roof costs nothing for twenty-four years and then costs fourteen thousand dollars in one week. If the reserve is not funded during the quiet years, the money is not there in the loud one, and the owner covers it from savings, from a credit line, or by deferring the work. A property that shows positive cash flow for six straight years and then absorbs a furnace and a roof in year seven did not have positive cash flow. It had a funding gap it had not reached yet.

Sizing the reserve as a percentage of effective gross income, typically quoted between 5 and 15 percent, is a sanity check rather than analysis. The defensible method is a component schedule: list each major system, estimate replacement cost and remaining useful life, divide, and sum the annual amounts. The result is specific to the actual building, and it forces the buyer to look at the roof, the furnace and the panel during the inspection rather than after closing.

Worked Example: One Hypothetical Rental, End to End

Everything below describes a hypothetical property constructed for illustration, not a listing, a market quote, a projection or a recommendation. The purchase price, rent, expenses, component lives and loan terms are stated assumptions chosen to make the arithmetic legible. Real properties differ on every line.

The property. A three-bedroom, two-bath single-family house. Purchase price 240,000 dollars. Market rent 2,500 dollars per month. Tenant pays electricity, gas and water; the owner pays trash. No HOA. Financed with a 30-year fixed-rate loan at an assumed 6.50 percent, 25 percent down.

Step 1: Gross scheduled rent to effective gross income

The 6 percent allowance assumes roughly two and a half weeks of vacancy per year on average plus a small credit-loss provision. That is an assumption, not a measurement, and it is the first thing to stress test.

Step 2: Operating expenses, line by line

Effective gross income of 28,800 dollars minus operating expenses of 10,844 dollars gives net operating income of 17,956 dollars. Against a 240,000 dollar purchase price, that is a 7.48 percent cap rate. A broker would stop here and call it an attractive yield.

Step 3: The capital expenditure reserve

Building the reserve from components rather than a percentage:

That is 274 dollars per month, or 11.4 percent of effective gross income. It falls inside the conventional 5 to 15 percent band, but it arrived there from the actual building rather than a rule of thumb, so it can be defended line by line and revised when an inspection reveals a roof with eight years left instead of twenty-five.

Net operating income of 17,956 dollars minus the 3,290 dollar reserve leaves 14,666 dollars. On the 240,000 dollar price, that is an unlevered yield of 6.11 percent, well below the 7.48 percent cap rate. The reserve costs 1.37 percentage points of yield, and it is not optional.

Step 4: Debt service and pre-tax cash flow

A 25 percent down payment is 60,000 dollars, leaving a 180,000 dollar loan. At an assumed 6.50 percent fixed for 30 years, the monthly principal-and-interest payment is 1,137.72 dollars, or 13,653 dollars per year (13,652.67 to the cent). Property taxes and insurance already sit in operating expenses above, so they are excluded here to avoid double counting even though a lender may escrow them into the same monthly payment.

Step 5: Cash invested and cash-on-cash return

Cash-on-cash return divides one year of pre-tax cash flow by the cash actually committed, not by the purchase price:

• Down payment: 60,000
• Closing costs (loan fees, title, transfer, prepaid items): 5,400
• Initial make-ready before the first tenant: 3,600
• Total cash invested: 69,000

1,013 dollars divided by 69,000 dollars is a cash-on-cash return of 1.47 percent.

Debt Service: Why Half the Payment Disappears From the Tax Return

Debt service is one cash payment made of two economically different components. In the first year of the hypothetical loan, the 13,653 dollars of payments break down as 11,641 dollars of interest and 2,012 dollars of principal, leaving a balance of 177,988 dollars at the end of year one.

Interest is an expense. It leaves permanently and, for a rental property, it is generally deductible against rental income. Principal is not an expense at all. It is a transfer from one asset (cash) to another (equity in the property). It reduces what you owe, it is not deductible, and it does not appear anywhere on the income statement.

Two consequences follow, and both surprise first-time owners. An amortizing loan gets less tax-efficient over time: early payments are mostly deductible interest, late payments are mostly non-deductible principal, so the cash outflow stays flat while the deductible portion shrinks, slowly raising taxable income even if rent never changes.

And the loan structure changes the cash flow without changing the property. Net operating income of 17,956 dollars is a fact about the building. Whether that supports the debt depends entirely on the loan: a shorter amortization, a higher rate or a smaller down payment all raise the annual payment against unchanged income. The Consumer Financial Protection Bureau: Understand the Different Kinds of Loans Available explains how loan term, rate type and amortization interact for residential mortgages, and the same mechanics drive an investment-property loan even though underwriting standards and pricing differ.

A lender looking at this property computes a debt service coverage ratio: net operating income divided by debt service, or 17,956 divided by 13,653, which is 1.32. Recompute it after funding the reserve and it falls to 1.07 (14,666 divided by 13,653). Lenders typically use the first figure. Owners live with the second.

Cash Flow Is Not Taxable Income

These are two separate calculations that share some inputs and disagree on four of them. Understanding the disagreement keeps an owner from being surprised by a tax bill on a property that produced almost no cash, or by the reverse.

Depreciation is the item with no cash counterpart. IRS: Publication 527, Residential Rental Property describes depreciating residential rental property under the Modified Accelerated Cost Recovery System, and states that under the General Depreciation System residential rental property is depreciated over 27.5 years. Land is never depreciated, so the basis has to be allocated between land and improvements before the calculation can run.

Applying that with an assumed 20 percent land allocation: 240,000 dollars becomes 48,000 dollars of land and a 192,000 dollar depreciable building basis. Divided over 27.5 years, that is 6,982 dollars of annual depreciation (6,981.82 to the cent). The allocation percentage is itself an assumption that must be supported, commonly by the assessor's land-to-improvement split or an appraisal, and it materially changes the deduction.

Taxable income for year one, on the same property:

The property produced 1,013 dollars of spendable cash and a taxable loss of about 667 dollars in the same year. The 1,680 dollar gap between the two reconciles exactly: 6,982 dollars of depreciation, minus 3,290 dollars of reserve funding, minus 2,012 dollars of principal.

Three caveats sit next to that result rather than in a footnote. The reserve line is a modelling convention: money set aside is not itself deductible, while the actual capital expenditure is capitalized and depreciated on its own schedule and genuine repairs are deducted when incurred. Whether a rental loss is usable in the current year depends on rules described in Publication 527, including passive activity and at-risk limits, which are outside the scope of this page. And depreciation taken is generally recaptured on sale. None of this is tax advice, and the treatment of a specific property depends on facts this page cannot know. Swoopr's taxes and rules section covers investment tax treatment more broadly, and a licensed tax professional is the right place to settle a real return.

Cash-on-Cash Return Versus Total Return

Cash-on-cash return answers a narrow question: how much spendable cash did this investment produce this year, relative to the cash I put in? On the hypothetical property, 1,013 dollars on 69,000 dollars is 1.47 percent. It deliberately ignores appreciation, principal reduction and tax effects, and that narrowness is the point. It is the number that tells you whether the property funds itself.

Total return is a wider frame. Add the two non-cash components:

Fourteen point eight percent looks very different from one point five percent, and both are honest descriptions of the same year. A great deal of rental property marketing lives in exactly that gap.

The 3.0 percent appreciation figure is an assumption inserted to complete the illustration, not a forecast, and property values fall as well as rise. At zero appreciation, total return drops to 3,025 dollars, or 4.4 percent. At a 3 percent decline it is negative. Appreciation is the largest component of the total return figure and the only one that is entirely an assumption, which makes total return the more fragile measure despite being the larger.

Principal reduction is more solid: as long as payments are made, the balance falls on a known schedule. It is still not liquid, converting to spendable money only through a sale (with transaction costs and potential depreciation recapture) or a refinance (which replaces the equity with new debt).

Use both and never substitute one for the other. Cash-on-cash governs survivability, because a property with negative cash flow requires the owner to fund it every month regardless of what the equity is doing. Total return governs whether the capital was well allocated over a holding period. Swoopr's portfolio management section covers how a single illiquid, leveraged, concentrated position fits alongside liquid holdings.

What Can Go Wrong

The worked example above is a single scenario in which nothing unusual happens. The risks below are the ones that move the bottom line most, grouped by where they originate.

Operational risk

One extended vacancy resets the year. Every additional month of vacancy removes 2,500 dollars of rent against 1,013 dollars of annual cash flow. A single bad tenancy combining three months of unpaid rent, an eviction and 4,000 dollars of damage exceeds four years of cash flow. A one-property portfolio has no diversification against its own tenant.

Capital risk

The reserve schedule assumes components fail near the end of their estimated lives. They do not always. A furnace failing in year three with a 9,000 dollar replacement has accumulated only 1,500 dollars of reserve. The schedule is a funding plan, not a guarantee of timing, and the early years carry the most exposure.

Market and expense risk

Rents can fall and vacancy can rise, usually together and usually when local employment weakens. Expenses are far less flexible than revenue: a 10 percent rent decline removes 3,000 dollars of gross scheduled rent while operating expenses barely move. Property taxes and insurance are set by other parties, are not negotiable in any practical sense, and together make up 4,100 dollars of this property's 10,844 dollar expense base. A 25 percent increase in both removes 1,025 dollars, slightly more than the entire year's cash flow.

Financing and liquidity risk

A fixed-rate loan held to maturity removes financing risk. An adjustable-rate loan, a balloon, or any plan depending on a refinance does not: the property must support the payment at whatever rate exists on the reset date. Separately, a rental cannot be partially sold, and a full sale takes months and carries transaction costs commonly running several percent of the price. A REIT position can be trimmed on any trading day, and that gap widens in a stressed market rather than narrowing.

Behavioural risk

Deferred maintenance is the most common failure mode of a thinly capitalized rental, because deferring it is the only lever an owner controls in a bad month. It works, briefly, and compounds into a larger bill later. Swoopr's risk management section covers position sizing and reserve discipline in a general portfolio context.

Direct Ownership, REITs and Syndications Compared

These are three different ways to hold real estate exposure, and they differ far more in structure than in underlying asset.

Investor.gov: Real Estate Investment Trusts (REITs) describes what a REIT is and how listed, public non-traded and private REITs differ in trading, valuation and liquidity. Swoopr covers the vehicles in more depth: non-traded REITs, real estate syndications and real estate crowdfunding each carry different liquidity and disclosure terms.

The honest framing is that direct ownership pays you for taking on work, concentration and illiquidity that a REIT investor declines. Whether that trade is worth making depends on the time available, the capital available, and the tolerance for a single asset that can require money at short notice.

Due Diligence: What to Verify Before You Underwrite

Every line in the worked example is an input someone can check. In descending order of how often they turn out wrong:

1. Property taxes after transfer, not the seller's current bill. Pull the county assessor record, find the assessment method and any exemptions attached to the current owner, and model the post-sale bill. This is the most frequent single error in an amateur pro forma.
2. Insurance, quoted rather than estimated. Get a real landlord-policy quote on the actual address before removing the inspection contingency. Roof age, claims history and regional catastrophe exposure all move the premium.
3. Rent, from signed leases. Ask for the lease documents and a rent roll, not an asking-rent opinion. Cross-check against nearby signed leases and against HUD User: Fair Market Rents for the county.
4. Vacancy, from market data. Sanity-check the assumption against published regional rental vacancy rates from U.S. Census Bureau: Housing Vacancies and Homeownership (CPS/HVS) rather than against a seller's history on one unit.
5. Component ages, from the inspection. Record the roof, furnace, air conditioner, water heater, electrical panel and window ages during the inspection, then rebuild the reserve schedule from what is actually there.
6. The rules that apply to renting here. Licensing, inspection requirements, occupancy limits, deposit handling, notice periods and any local rent regulation are set at state, county or municipal level and vary enormously. Verify with the local authority, because a broker summary is not a legal source.
7. The loan you can actually get. Investment-property terms differ from owner-occupied terms on rate, down payment and reserve requirements. Underwrite against a quoted term sheet, not an advertised primary-residence rate.
8. Utility responsibility, from the lease. Who pays water, sewer, trash and gas decides several hundred dollars a year and is frequently assumed rather than read.

Broader housing and mortgage market context comes from Freddie Mac: Research and Fannie Mae: Data and Insights, and housing-stock characteristics from the U.S. Census Bureau: American Housing Survey. Those inform the environment. They do not substitute for verifying the eight items above on the specific address.

Common Mistakes and Misconceptions

"Rent minus mortgage equals cash flow." On the worked property this overstates the result by 15,334 dollars a year, a factor of sixteen. It omits vacancy, every operating expense and the entire capital reserve. It is the single most expensive shortcut in residential real estate.

"Net operating income is my cash flow." Net operating income is calculated before debt service and before capital expenditures. That is what makes it useful for valuation and for comparing properties with different capital structures, and it is exactly what makes it useless as a measure of what reaches your bank account.

"I self-manage, so management costs nothing." It costs your time and hides a real number. A property that only works because the owner is unpaid staff stops working the day the owner needs a manager, and the fee becomes a cash expense the moment a life change forces the switch.

"Repairs and maintenance covers the roof." Repairs and maintenance is the small-ticket recurring line. Component replacement is a separate, much larger schedule with its own timing. Conflating them is how a property shows six good years and one catastrophic one.

"The mortgage payment is a deductible expense." Only the interest portion is. In year one of the hypothetical loan, 2,012 of the 13,653 dollars paid is not deductible, and that non-deductible share grows every year the loan amortizes.

"Appreciation is part of my return." It is part of total return, and it is the only component that stays an assumption until a sale occurs. It cannot pay a furnace bill. A property depending on appreciation to justify itself is a directional bet on prices with an operating business attached, which is a legitimate position but should be held knowingly.

"More leverage means higher returns." Only when the property's yield exceeds the cost of the debt, measured properly. The next section sets out the test.

Advanced: The Loan Constant and Break-Even Occupancy

Two measures explain most of what leverage does to a rental, and neither requires a spreadsheet.

The loan constant test

The loan constant (sometimes the mortgage constant) is annual debt service divided by the original loan balance. It bundles interest rate and amortization speed into one number that is directly comparable to a cap rate. For the hypothetical loan, 13,653 divided by 180,000 is 7.58 percent.

Compare that to the property's yield:

• Cap rate on purchase price: 7.48 percent (17,956 divided by 240,000)
• Yield after funding the capital reserve: 6.11 percent (14,666 divided by 240,000)
• Loan constant: 7.58 percent

The loan constant exceeds both. This is negative leverage: each borrowed dollar costs more annually than the property earns on it, so borrowing more lowers cash-on-cash return rather than raising it. Run the same property at 40 percent down and the loan falls to 144,000 dollars, annual debt service to about 10,922 dollars, and cash flow rises to roughly 3,744 dollars. Cash invested rises to 105,000 dollars, and cash-on-cash return rises to about 3.6 percent, more than double the more leveraged figure. That is the opposite of what "leverage amplifies returns" implies.

Positive leverage exists whenever the property's yield exceeds the loan constant, and then the relationship reverses: more debt raises cash-on-cash return and also raises the fragility of the position. The point is not that leverage is bad. It is that the sign of the effect has to be checked rather than assumed, and the reserve-adjusted yield is the honest number to check it against.

Break-even occupancy

Break-even occupancy is the share of potential income the property must collect to cover everything it owes. Take operating expenses plus debt service, divided by gross potential income (gross scheduled rent plus other income):

• Excluding the capital reserve: (10,844 + 13,653) divided by 30,600 is 80.1 percent
• Including the capital reserve: (10,844 + 3,290 + 13,653) divided by 30,600 is 90.8 percent

The second figure describes the actual position. This property must collect more than 90 percent of its potential income just to stay level once the reserve is funded, so it tolerates roughly five weeks of vacancy a year before it starts consuming the owner's other money. That single number communicates the property's fragility more clearly than the 1.47 percent cash-on-cash return does, and it is trivial to compute for any deal.

Where the reserve should live

A reserve that exists only in a spreadsheet is not a reserve. The operational version is a separate account funded monthly by standing transfer, with the balance tracked against the component schedule. That converts an underwriting assumption into an actual buffer, and it is the difference between an owner who replaces a furnace in January and one who negotiates payment plans with a contractor.

Frequently Asked Questions

References

This guide relies on U.S. government and regulator publications, each retrieved and verified on 22 August 2026:

• IRS: Publication 527, Residential Rental Property: depreciation of residential rental property under MACRS, including the 27.5-year General Depreciation System recovery period, the exclusion of land from the depreciable basis, and the limits that govern whether a rental loss is currently usable.
• IRS: Topic No. 414, Rental Income and Expenses: what counts as rental income and which ordinary and necessary rental expenses are deductible.
• IRS: Tips on Rental Real Estate Income, Deductions and Recordkeeping: the recordkeeping and expense-classification guidance behind the operating expense list above.
• IRS: Tangible Property Final Regulations: the framework separating amounts that must be capitalized (betterments, restorations and adaptations) from amounts deductible as repairs and maintenance.
• U.S. Census Bureau: Housing Vacancies and Homeownership (CPS/HVS): published rental vacancy rates used to sanity-check a vacancy assumption against the market.
• HUD User: Fair Market Rents: rent estimates by bedroom count and area, used as a reference band for a rent assumption.
• U.S. Census Bureau: American Housing Survey: housing stock characteristics, including building age and equipment, relevant to component life estimates.
• Investor.gov: Real Estate Investment Trusts (REITs): how listed, public non-traded and private REITs differ in trading, valuation and liquidity, used in the comparison table.
• Consumer Financial Protection Bureau: Understand the Different Kinds of Loans Available: how loan term, rate type and amortization interact in a residential mortgage.
• Freddie Mac: Research: housing and mortgage market context.
• Fannie Mae: Data and Insights: housing and mortgage market context.

The property in the worked example is an original, hypothetical illustration built to make the operating statement reconcile end to end. The purchase price, rent, expense lines, component lives, loan terms, land allocation and appreciation rate are stated assumptions, not market quotes, forecasts or recommendations. All arithmetic was computed from those stated inputs. This is educational content, not personalized investment, tax or legal advice, and the treatment of any specific property depends on facts and jurisdiction this page cannot know.

Related Reading

• Real Estate & REIT Investing: the parent hub covering the full cluster, from listed REITs to direct ownership and private vehicles.
• REIT NOI (Net Operating Income) Explained: the canonical Swoopr explainer for net operating income, including how it is reported and where it can mislead.
• REIT Cap Rate Explained: what a capitalization rate measures, what it assumes, and why two properties with the same cap rate can be very different investments.
• Real Estate Cap Rate Calculator: run the value, income and yield relationship on your own numbers.
• Single-Family and Short-Term Rental Investing: how the operating statement above changes when the property is rented nightly rather than annually.
• Multifamily Real Estate Investing: the same line items scaled to buildings where unit count changes the vacancy and management maths.
• Mortgage Note Investing and Property Management: the operational side of holding property, and the lender's position on the other side of the debt service line.
• Commercial Real Estate Investing: how lease structure changes who pays which operating expenses.
• REIT Occupancy Explained: the portfolio-level version of the vacancy assumption used above.
• Taxes and Rules: Swoopr's coverage of investment tax treatment and account rules.