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RE Finance Ch 14
Real Estate Finance and Investments
| Term | Definition |
|---|---|
| disposition | sale of the property |
| equity buildup | Assuming that the mortgage on the property has positive amortization, as the outstanding mortgage balance decreases the investor's equity position increases. |
| low-income housing tax credit | |
| marginal rate of return | The return that would result from holding the property only one additional year. |
| optimal holding period | |
| rehabilitation investment tax credits | |
| reinvestment rate | |
| renovation | improving a property by enlarging ir or by making major capital improvements to upgrade quality and reduce operating costs |