Resources
Plain Answers To The Questions Boards Ask About Buildings
A glossary of the terms you will meet in a condition report or a capital plan, and our earlier writing on real estate basics.
Everything here is written in plain words, for the people who approve the budget as well as those who prepare it.
Glossary
The Terms In A Condition Report, Each In One Sentence
From deferred maintenance to millage: one plain sentence each, with the detail underneath for anyone who wants it.
Open the full glossaryFacility Condition Index (FCI)
A building’s repair backlog divided by what it would cost to replace the building, shown as a percentage.
Read the definitionDeferred Maintenance
Repairs and replacements that were due but have been put off, usually because the budget ran short.
Read the definitionCapital Improvement Plan (CIP)
A multi-year schedule of major building and infrastructure projects, giving each one a cost, a year and a way to pay for it.
Read the definitionGASB Statement 34
The Governmental Accounting Standards Board (GASB) rule that set the basic financial reporting model for state and local governments, including how they report capital assets such as buildings, roads and equipment.
Read the definitionRemaining Useful Life
How many more years a building system is expected to keep working before it needs replacing.
Read the definitionMillage
A property tax rate expressed in mills, where one mill is $1 of tax for every $1,000 of taxable property value.
Read the definition
The Formula
Repair backlog
Replacement cost
= Facility Condition Index (FCI)
- Healthy
- Under 5%
- Watch
- 5% to 10%
- Critical
- Over 10%
Archive
Archive: Real Estate Investing Basics
We wrote these for owners of rental and investment property, before our work turned to public and institutional owners. We keep them online as a reference.
All writingHow to Choose Real Estate Portfolio Management Software
The best portfolio software depends on what you actually need. Here are the categories of tools, the features that matter, and how to match them to your portfolio.
How to Track Rental Property Expenses
Tracking expenses is what separates a real return from a guessed one. Here are the categories that matter, the operating-vs-capital line, and a system that scales.
DSCR Loans Explained: How They Work for Investors
A DSCR loan qualifies you on the property's income, not your personal income. Here is how DSCR loans work, what they cost, and when they beat a conventional mortgage.
When to Refinance a Rental Property
Refinancing a rental can lower your rate, pull out equity, or both — but timing matters. Here are the signals that say go, the costs to weigh, and the traps to avoid.
Spreadsheets vs Real Estate Portfolio Software
Spreadsheets run most real estate portfolios until they quietly stop scaling. Here is an honest look at where spreadsheets win, where they break, and when to switch.
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