What is unlevered cash flow?
The property’s cash flow stream ignoring all financing: total acquisition cost at Year 0, Cash Flow Before Debt Service each year, and net sale proceeds at exit. Its IRR measures the asset’s return independent of the loan.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.