# Real Estate Basics Level 5: Capstone: investing and analysis (free quiz and certificate) | Get Certified for Free

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Real Estate Basics · Level 5 of 5 · Capstone

# Capstone: investing and analysis

Evaluate a rental property with cash flow, cap rate, and risk checks.

## Study notes

1. Net operating income (NOI) is rental income minus operating expenses such as taxes, insurance, repairs, management, and vacancy. It excludes mortgage payments.
1. Cap rate is NOI divided by the property price. It compares properties without considering financing.
1. Cash flow is what remains after operating expenses and debt service. Cash-on-cash return is annual cash flow divided by the cash you invested.
1. Leverage increases both gains and losses. A vacancy or big repair can turn positive cash flow negative.
1. Check zoning, rental rules, short-term rental limits, HOA rules, insurance cost, and reserves before you buy.

## Quiz: 6 questions

Choose one answer for each question, then check your answers. Score 5 of 6 to pass. Then enter your name and email to download a PDF certificate and have a copy emailed to you. Answers are graded in your browser.

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