1. Novation: A legal concept where an existing contract is replaced with a new one, with the consent of all parties involved. In real estate, novations can be used to replace a buyer or seller in a contract with a new party, effectively releasing the original party from their obligations.

2. Multi-Unit Property: A property that contains multiple residential units, such as a duplex, triplex, or apartment building. Investors often purchase multi-unit properties to rent out individual units for income.

3. Estoppel Certificate: A document used in real estate transactions that verifies the terms of an existing lease or agreement between a tenant and landlord. It prevents either party from later claiming different terms were agreed upon.

4. Cap Rate (Capitalization Rate): A metric used in real estate investing to estimate the rate of return on a property based on its net operating income (NOI) and purchase price. It’s used to evaluate the profitability of income-producing properties.

5. 1031 Exchange: A tax-deferred exchange where an investor sells one investment property and purchases another, deferring capital gains taxes. This strategy is often used by investors to upgrade or diversify their real estate portfolio.

6. Debt Service Coverage Ratio (DSCR): A financial ratio used by lenders to determine a property's ability to cover its debt payments with its net operating income (NOI). A DSCR of 1 or higher indicates that the property generates enough income to cover its debt.

7. Pro Forma: A projection of future financial performance, often used by investors to estimate the potential income and expenses for a property before purchase.

8. Occupancy Rate: The percentage of units that are currently rented in a multi-unit property. A high occupancy rate is desirable for property owners and investors.

9. Vacancy Rate: The percentage of units in a multi-unit property that are currently unoccupied. Investors monitor this to evaluate the stability of rental income.

10. Cash-on-Cash Return: A metric used by real estate investors to measure the annual return on the cash invested in a property. It’s calculated by dividing the net cash flow by the total cash invested.

11. Master Lease: A lease agreement where the tenant (often an investor) leases a property and then subleases it to other tenants. Master leases are used to control a property without outright ownership.

12. Rent Roll: A document or report listing all the tenants in a property, the amount of rent each pays, and the dates their leases expire. It’s a critical tool for property investors evaluating multi-unit properties.

13. Due Diligence: The research and investigation process before purchasing a property, which includes reviewing financial documents, inspecting the property, and verifying legal details like title status or existing leases.

14. Gross Rent Multiplier (GRM): A simple calculation used by investors to evaluate the potential profitability of an income property. It’s found by dividing the property’s price by its annual gross rental income.

15. Assignment of Lease: A situation in which a tenant transfers their rights and obligations under a lease to another party. The new tenant assumes the lease terms, and the original tenant may be released from liability if approved by the landlord.

Legal and Financial Terms:

16. Estoppel: A legal principle that prevents someone from contradicting or denying a statement they made in the past if another party has relied on that statement. In real estate, estoppel certificates are used to verify lease details.

17. Subordination Agreement: A legal document that establishes one party’s claim as junior or inferior to another claim, often used to prioritize mortgage liens.

18. Title Defect: An issue with the legal ownership of a property that could prevent its sale or transfer. Defects may arise from errors in public records, unknown liens, or other factors.

19. Private Mortgage Insurance (PMI): Insurance required by lenders when a borrower puts down less than 20% of a home's purchase price. PMI protects the lender in case of default.

20. Appraisal: An independent assessment of a property’s market value, usually performed by a licensed appraiser. Lenders require appraisals to ensure the property’s value matches the loan amount.

21. Amortization: The process of paying off a loan over time through scheduled, equal payments. Amortization schedules show how much of each payment goes toward interest versus the loan principal.

22. Earnest Money: A deposit made by a buyer to show they are serious about purchasing a property. If the deal falls through due to buyer fault, the seller may keep the earnest money as compensation.

23. Due-on-Sale Clause: A provision in a mortgage that requires the borrower to pay off the loan if they sell the property. It prevents a buyer from assuming the seller's existing mortgage.

24. Pre-Approval: An evaluation by a lender that determines how much they are willing to loan a borrower, based on their financial background, before they begin house shopping.

25. Balloon Payment: A large, lump-sum payment due at the end of a loan term, typically used in certain types of mortgages or seller financing deals.