0 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


Annual Debt Service (ADS)

Total amount of all debt payments on a rental property for a one-year period.

For example, if the rent is $3,000/month, ADS is $3,000 x 12 months = $36,000.

This amount is subtracted from cash flow, but since a portion of it is used to pay down principle, that portion does count for long-term cash flow.

NEXT: Annual Percentage Rate (APR)