The ratio of a property's net income to its initial investment is known as what?

The ratio of a property's net income to its initial investment is best identified as return on investment. This measurement allows investors to assess the efficiency of their investment by calculating how much return they receive relative to the amount of money they initially put in. It provides a straightforward way for investors to evaluate the profitability of an investment over time or to compare the profitability of different investment opportunities.

In this context, capitalization rate which reflects the expected return on a real estate investment based on its net operating income and its current market value, is related but differs as it does not take into account the initial investment specifically. After-tax cash flow represents the net income available after taxes have been deducted, which is relevant to overall cash flow but not directly to the ratio of income to investment. Gross rental yield measures the income generated from rental properties relative to the price but does not account for expenses related to generating that income, making it less applicable to this specific question about net income in relation to initial investment.