KEY INVESTMENT PERFORMANCE MEASURES Capitalization Rate: Net Operating Income divided by Purchase Price Gross Rent Multiplier: Purchase Price divided by Scheduled Gross Income Cost Per Unit: Purchase Price divided by Number of Units Cost Per Square Foot: Purchase Price divided by Gross Square Feet of Building Cash-on-Cash Return: Cash Flow divided by Down Payment Debt Coverage Ratio: Net Operating Income divided by Annual Debt Service Also know that… Net Operating Income divided by Capitalization Rate = Purchase Price Scheduled Gross Income times Gross Rent Multiplier = Purchase Price