Welcome to episode three of our real estate podcast, hosted by Morgan Cole. In this episode, Morgan sets the stage by providing listeners with a foundation to build upon and to help all of us be on the same page. He wanted to do a series in the very beginning of this podcast to go over some commonly used real estate metrics, including cap rate, cash on cash, and an internal rate of return.

Morgan starts by discussing cap rate and the concept of net operating income (NOI), which is essential to calculate cap rate. He explains what NOI is, why it is important, and most importantly, how to calculate it. They go over what should be included in operating expenses and why certain expenses are not included.

Moving on to calculating return on investment (ROI), Morgan explains the two components of ROI: effective rental income and operating expenses. He dives deeper into what effective rental income is and why it's important to calculate it.

This episode is a must-listen for anyone interested in real estate investment, as Morgan provides valuable insights and tips on how to calculate these essential real estate metrics. So sit back, relax, and enjoy the podcast!