Gross yield
Gross yield is annual rent divided by purchase price, before any expenses. A $600 per week rental bought for $600,000 grosses 5.2%.
Gross yield is the quick screening number — useful for comparing properties, useless for knowing what you'll actually earn. Two properties with identical gross yields can have very different real returns once rates, insurance, management, and maintenance are paid. For the real number, see net yield.
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