Last updated: April 2026
How to Use This Glossary
This glossary covers the fifty terms a Savannah real estate investor actually needs — not a generic national list, but the vocabulary that shows up in real Chatham County, Bryan County, and Tybee Island deals. Every definition is written to answer the search query on its own. Many link to deeper guides on team912.com where the concept matters specifically for Savannah investors.
If a term you need is not here, call the Team 912 brokerage at (912) 756-5888 and we will walk through it.
Financing Terms
DSCR Loan
DSCR stands for Debt Service Coverage Ratio. A DSCR loan is an investor mortgage that qualifies the borrower based on the property’s projected rental income rather than the borrower’s personal W-2 income or tax returns. Lenders typically require a DSCR of 1.0 to 1.25, meaning rent covers principal, interest, taxes, insurance, and any HOA dues with a small cushion. DSCR loans are the workhorse financing tool for Savannah investors buying single-family rentals, small multifamily, and short-term rentals because they let you scale past the four- and ten-property conventional loan limits. See the Team 912 professional investor hub for how DSCR fits into our typical Savannah deal structure.
Conventional Loan
A conventional loan is a non-government mortgage that conforms to Fannie Mae or Freddie Mac guidelines. For investors, conventional loans offer the lowest interest rates but cap most borrowers at 10 financed properties and require full-documentation underwriting of personal income. Most serious Savannah investors use conventional loans for their first few properties and then shift to DSCR or portfolio loans to continue scaling.
Portfolio Loan
A portfolio loan is a mortgage that a bank originates and keeps on its own balance sheet rather than selling to Fannie Mae or Freddie Mac. Because the bank holds the loan, it can write more flexible terms — cross-collateralization across multiple properties, interest-only periods, higher loan-to-value ratios for experienced investors. Several Georgia community banks write portfolio loans for Savannah investor clients.
Hard Money Loan
A hard money loan is a short-term, asset-based loan used primarily for fix and flip deals and the purchase phase of a BRRRR. Rates run from 9 to 13 percent with 1 to 3 points in origination fees, and terms are typically 6 to 18 months. Hard money lenders care about the property’s as-is value and after-repair value more than the borrower’s credit. In Savannah, hard money is how most flippers fund acquisition and rehab before refinancing into a long-term DSCR loan or selling.
Private Money Loan
A private money loan is financing from an individual or small partnership rather than an institution. Terms are negotiated directly, often secured by a first-position mortgage. Many Savannah investors fund deals through local private lenders they meet at investor meetups or through relationships with Team 912.
Non-QM Loan
Non-QM (non-qualified mortgage) is a category of loans that fall outside the Consumer Financial Protection Bureau’s qualified mortgage rules. DSCR loans, bank statement loans, and asset depletion loans are all non-QM products. For self-employed Savannah investors with hard-to-document income, non-QM loans are often the path to financing.
LTV (Loan-to-Value)
LTV is the ratio of loan amount to property value, expressed as a percentage. A $300,000 loan on a $400,000 property is 75 percent LTV. Investor loans typically cap LTV at 75 to 80 percent on purchases and 70 to 75 percent on cash-out refinances. Lower LTV means lower rates and more equity cushion.
LTC (Loan-to-Cost)
LTC is the ratio of loan amount to total project cost (purchase price plus rehab budget). Hard money lenders often lend up to 90 percent LTC on fix-and-flip deals, meaning the investor brings 10 percent of the combined acquisition and rehab number plus closing costs.
ARV (After-Repair Value)
ARV is what a property will be worth after renovations are complete, based on comparable sales of recently sold homes in similar condition. ARV drives every fix-and-flip and BRRRR calculation — the refinance or sale proceeds come out of ARV, not the purchase price. Conservative Savannah investors underwrite ARV to the 70th percentile of comps, not the 90th. The Team 912 rehab budget calculator includes an ARV worksheet.
Cash-Out Refinance
A cash-out refinance replaces an existing mortgage with a larger one and delivers the difference in cash to the owner. In a BRRRR deal, the cash-out refinance returns the investor’s original capital so it can be redeployed into the next deal. DSCR cash-out refinances on Savannah rentals typically cap at 70 to 75 percent LTV.
Points and Origination Fees
Points are upfront fees paid to a lender, expressed as a percentage of the loan amount. One point equals one percent of the loan. Points reduce the interest rate (discount points) or compensate the lender for originating the loan (origination points). On Savannah DSCR and hard money loans, 1 to 3 points is standard.
Deal Analysis and Metrics
Cap Rate
Cap rate (capitalization rate) is the annual net operating income of a property divided by its purchase price or current value, expressed as a percentage. A $30,000 NOI on a $500,000 property produces a 6 percent cap rate. Cap rate lets investors compare properties on apples-to-apples terms regardless of financing. Savannah long-term rental cap rates typically run 5.5 to 7.5 percent depending on neighborhood and property condition. Higher cap rates mean higher yield but usually come with more risk — older properties, weaker neighborhoods, or more deferred maintenance. See the pillar analysis of whether Savannah is a good market for current cap rate expectations.
NOI (Net Operating Income)
NOI is the annual rental income of a property minus all operating expenses (property taxes, insurance, property management, repairs, vacancy allowance, utilities the owner pays), but before mortgage debt service and income taxes. NOI is the numerator in the cap rate calculation and the single most important number when evaluating a rental.
Cash-on-Cash Return
Cash-on-cash return is annual pre-tax cash flow divided by total cash invested (down payment, closing costs, and rehab), expressed as a percentage. If a Savannah BRRRR deal leaves $20,000 of your cash in the property and produces $3,000 of annual cash flow, the cash-on-cash is 15 percent. Investors targeting aggressive scale look for 10 percent or better; investors targeting appreciation will accept less.
GRM (Gross Rent Multiplier)
GRM is the purchase price divided by annual gross rent. A $300,000 property renting for $24,000 per year has a GRM of 12.5. GRM is a quick screening ratio — lower is better — but it ignores expenses and financing. Use it for first-pass filtering, then run full NOI and cap rate math on anything that passes.
The 1 Percent Rule
The 1 percent rule says a rental should generate monthly gross rent equal to at least 1 percent of the purchase price. A $250,000 property renting for $2,500 a month passes. Very few Savannah properties meet the 1 percent rule in 2026 — most hit 0.6 to 0.8 percent. The rule is a coastal-market filter from an earlier era; investors who reject anything under 1 percent will miss every current Savannah deal. Use it as a sanity check, not a gate.
The 50 Percent Rule
The 50 percent rule estimates that operating expenses (excluding mortgage) will equal half of gross rent over time. If a Savannah property grosses $2,000 a month in rent, assume $1,000 a month in taxes, insurance, repairs, vacancy, and management combined. For rough back-of-the-envelope math it is surprisingly close on most Savannah rentals.
Vacancy Rate
Vacancy rate is the percentage of time a rental property sits empty. Savannah long-term rental underwriting typically assumes 5 to 8 percent vacancy. Short-term rentals are measured by occupancy rate (the inverse) rather than vacancy.
Operating Expense Ratio
Operating expense ratio is annual operating expenses divided by gross rental income. A healthy Savannah rental runs 35 to 50 percent. Anything above 55 percent deserves a closer look for deferred maintenance, outsized insurance (common on pre-1950 historic homes), or property management fees eating margin.
Debt Service
Debt service is the annual mortgage payment — principal and interest combined. When a Savannah DSCR lender calculates a 1.2 DSCR, they are checking that NOI divided by debt service equals at least 1.2.
Break-Even Occupancy
Break-even occupancy is the occupancy percentage at which a short-term rental covers all expenses and debt service but produces no profit. STRs in Tybee Island and unincorporated Chatham County typically break even around 45 to 55 percent occupancy; anything above that is profit. Run this number before you buy, not after.
Strategy Terms
BRRRR
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. The investor buys a below-market property (usually with hard money or cash), renovates it to force appreciation, rents it at market rates, then cash-out refinances at the new higher value to pull the original capital back out. The recovered capital funds the next BRRRR. Done correctly, the investor ends up owning a rental with little or none of their own money left in the deal. BRRRR works best in Savannah’s mid-town neighborhoods like Ardsley Park and Starland District where older housing stock creates rehab upside. See the Team 912 BRRRR calculator for deal math.
Fix and Flip
Fix and flip is buying a distressed property, renovating it, and reselling it at a profit within 6 to 12 months. Unlike BRRRR, the property is not kept as a rental. Savannah fix and flip margins are tightest in the under-$300K range where retail buyer competition is highest, and best in the $400K-to-$700K range where renovation skill and historic credibility create defensible margin.
Buy and Hold
Buy and hold is the strategy of purchasing a rental property and keeping it long-term to capture rental cash flow, mortgage paydown, tax benefits, and appreciation. Buy and hold is the dominant strategy for Isle of Hope and the high-end waterfront markets where cap rates are lower but appreciation is more reliable.
House Hacking
House hacking is buying a multi-unit property (or a single-family home with rentable rooms, ADUs, or a pool house), living in one unit, and renting the others to cover or offset the mortgage. Owner-occupied financing — FHA, VA, or conventional with 3 to 5 percent down — makes house hacking the lowest-capital path into Savannah real estate. In Savannah’s Streetcar Historic District, house hacking is one of the few ways to legally operate a short-term rental because the overlay allows owner-occupied STVRs there.
Turnkey Investment
A turnkey investment is a rental property purchased fully renovated and already leased with a tenant in place and property management set up. The investor buys cash flow from day one with no operational work. Pooler new construction builds function as turnkey investments for out-of-state buyers. See the Pooler investor guide.
Build-to-Rent (BTR)
Build-to-rent is new construction specifically designed and built to be operated as a rental rather than sold to owner-occupants. BTR communities in Pooler and Bryan County are increasingly common and appeal to investors seeking new-construction depreciation, warranty protection, and minimal early maintenance.
Small Multifamily
Small multifamily refers to 2-to-4-unit residential properties (duplex, triplex, fourplex). These qualify for residential financing rather than commercial financing, which keeps rates low and down payments reasonable. Savannah’s Victorian Historic District and Thomas Square have meaningful small multifamily inventory, much of it converted from historic single-family homes.
Commercial Multifamily
Commercial multifamily is 5-or-more-unit apartment buildings, financed as commercial real estate with commercial loan terms (typically 25-year amortization, 5-to-10-year balloon, higher down payment). This is a different asset class from residential investing and requires specialized brokerage and lending.
Short-Term Rental Terms
STR (Short-Term Rental)
STR is the general industry term for a property rented in stays of less than 30 days, typically through Airbnb, Vrbo, or direct booking. STR is the operational category; specific jurisdictions use their own licensing terms.
STVR (Short-Term Vacation Rental)
STVR is the specific legal term used by the City of Savannah for short-term rentals operated under its zoning and permitting framework. Not every Savannah-area STR is a STVR — the term only applies inside Savannah city limits. Properties in unincorporated Chatham County, Pooler, Tybee Island, and Richmond Hill each operate under different rules. See the Team 912 STVR permit guide for the full five-jurisdiction breakdown.
STVR Overlay District
The STVR Overlay District is the set of three Savannah neighborhoods (Downtown Historic, Victorian Historic, Streetcar Historic) where non-owner-occupied STVRs are legal, subject to a 20 percent per-ward cap. Outside these three overlays, Savannah city does not permit non-owner-occupied short-term rentals. The overlay map is the single most important document a would-be Savannah STR buyer needs to understand.
20 Percent Ward Cap
The 20 percent ward cap is Savannah’s regulatory limit: no more than 20 percent of residential units in any ward within the Historic or Victorian overlay districts may operate as non-owner-occupied STVRs. When a ward hits the cap, new applications go on a waitlist until existing permits expire or are revoked. The cap does not apply to the Streetcar overlay, which is owner-occupied only.
ADR (Average Daily Rate)
ADR is the average nightly rate charged across all booked nights in a given period. Savannah Historic District STVRs commonly achieve ADRs of $225 to $325 in 2026, Tybee Island coastal rentals $275 to $450, and large Chatham County homes with pools can exceed $500. ADR times occupancy equals revenue per available night, the most useful top-line metric for STR underwriting.
Occupancy Rate
Occupancy rate is the percentage of available nights that a short-term rental is booked. Savannah Historic District STVRs typically run 55 to 70 percent occupancy; Tybee Island beach rentals are highly seasonal with summer occupancy above 80 percent and winter occupancy under 40 percent.
RevPAN (Revenue per Available Night)
RevPAN is ADR multiplied by occupancy rate, producing average revenue per available night across the calendar. A Savannah STVR with a $280 ADR and 65 percent occupancy generates a $182 RevPAN, or roughly $66,000 of gross annual revenue before expenses.
Hotel-Motel Tax
Hotel-motel tax is a local excise tax collected on short-term lodging stays. The City of Savannah charges 8 percent and the State of Georgia adds 7 percent, for a combined 15 percent that must be collected from guests and remitted to the city and state. Platforms like Airbnb collect and remit state tax automatically in Georgia but not always the local portion — owners are legally responsible either way.
Owner-Occupied STVR
An owner-occupied STVR is a short-term rental where the owner’s primary residence is on the property, typically with the owner living in one unit and renting another. Savannah’s Streetcar Historic District permits only owner-occupied STVRs; the other two overlays allow both owner-occupied and non-owner-occupied.
Savannah-Specific Regulatory Terms
Chatham County
Chatham County is the county containing the City of Savannah and the surrounding unincorporated areas, along with Tybee Island, Pooler, Port Wentworth, Garden City, and Thunderbolt. Unincorporated Chatham County has significantly looser STR rules than the City of Savannah — a $350 annual certificate with no cap and no waitlist. This is the single most important regulatory distinction for Savannah investors to understand. See the STVR permit guide.
Bryan County
Bryan County contains Richmond Hill and Pembroke and extends south of Savannah. Bryan County is the fastest-growing county in Georgia as of 2025, and its STR rules — specifically in Richmond Hill — are effectively the most investor-friendly in the region: there are no short-term rental regulations.
Effingham County
Effingham County sits northwest of Savannah and includes Rincon, Guyton, and Springfield. It is one of Georgia’s fastest-growing counties and offers significantly lower price points than Chatham, attracting long-term rental investors and new-construction buyers.
Historic District Overlay
The Historic District overlay is a zoning layer that places design and preservation review requirements on exterior changes to properties within the district. In Savannah, exterior renovations in the Historic Landmark District require review by the Historic Review Board (HRB). This affects rehab budgets and timelines for Ardsley Park flippers and BRRRR investors.
HRB (Historic Review Board)
The Historic Review Board is the City of Savannah body that reviews and approves exterior changes to properties in the Landmark Historic District, Victorian District, and Streetcar District. HRB review adds 30 to 90 days to most renovation timelines and restricts material choices (siding, windows, paint colors). Factor HRB timing into flip and BRRRR holding-cost math.
Chatham County Millage Rate
The millage rate is the property tax rate expressed in mills, where one mill equals one dollar per thousand dollars of assessed value. Savannah investors should model property taxes using current Chatham County millage plus any special assessment districts. See the Chatham County Tax Assessor website for current figures.
Tybee STR Phase-Out
The Tybee STR phase-out refers to Tybee Island’s ordinance banning new short-term rental permits in residential zones. Existing permits were grandfathered and may transfer with some sales, but no new residential-zone permits are being issued. Commercial-zoned Tybee properties remain eligible. This regulatory shift is the defining investor risk on Tybee and must be underwritten conservatively. See the Tybee Island investor guide.
Ownership, Tax, and Exit Terms
1031 Exchange
A 1031 exchange (named after IRS Code Section 1031) allows a real estate investor to sell an investment property and reinvest the proceeds into a like-kind property while deferring federal capital gains tax. Strict rules apply: identify replacement properties within 45 days, close within 180 days, and use a qualified intermediary to hold proceeds. For Savannah investors selling appreciated coastal properties, 1031 exchanges are the primary tax-deferral tool and a common reason capital rotates between Savannah and other markets.
LLC Vesting
LLC vesting is holding title to investment property in the name of a Limited Liability Company rather than in the investor’s personal name. Benefits include liability protection and privacy; costs include separate tax filings, annual state registration, and sometimes slightly higher loan rates. Most serious Savannah investors vest each property in its own LLC or in a small portfolio LLC.
Series LLC
A Series LLC is a single parent LLC with multiple protected “series” underneath, each holding a separate property with separate liability protection. Georgia does not directly recognize series LLCs, so Savannah investors who use them typically file in Delaware, Nevada, or Wyoming and register to do business in Georgia. Consult a real estate attorney — see the Team 912 local pros page.
Depreciation
Depreciation is an annual tax deduction that reflects the theoretical wear and tear on an investment property’s building (not land). For residential rentals, the IRS allows straight-line depreciation over 27.5 years. A $400,000 Savannah rental with $100,000 in land value depreciates the remaining $300,000 at roughly $10,909 per year — a non-cash deduction that can shelter rental income from taxation.
Cost Segregation
Cost segregation is an engineering-based analysis that separates a property’s building components into shorter depreciation schedules (5, 7, or 15 years for fixtures, landscaping, and specific systems) rather than the standard 27.5-year schedule. For Savannah investors with properties over $500,000 or with heavy renovation components, cost segregation can accelerate deductions meaningfully in the first five years.
Bonus Depreciation
Bonus depreciation is an accelerated first-year depreciation deduction for qualifying property components. The percentage has been phasing down from 100 percent toward zero; Savannah investors should verify current-year bonus depreciation rules with a CPA before closing. Cost segregation and bonus depreciation together are the core tax-acceleration strategy for high-income STR investors.
Capital Gains Tax
Capital gains tax is the federal tax on profit from the sale of an investment property. Long-term capital gains (holding period over one year) are taxed at 0, 15, or 20 percent federally depending on income, plus a potential 3.8 percent Net Investment Income Tax, plus Georgia state tax. 1031 exchanges defer this; step-up in basis at death eliminates it for heirs.
Passive Loss Rules
Passive loss rules (IRS Section 469) limit an investor’s ability to deduct rental losses against non-rental income. For most investors, rental losses offset only other passive income. Real Estate Professional status (750 hours and more than half of working hours spent in real estate) unlocks full deductibility — a meaningful lever for Savannah investors whose spouses can qualify.
Property and Transaction Terms
Earnest Money
Earnest money is a deposit paid when a purchase contract is signed, held in escrow, and credited toward closing. In Savannah, 1 to 2 percent of purchase price is typical. Earnest money is refundable during contingency periods and becomes at-risk once contingencies are released.
Due Diligence Period
The due diligence period is a contractually defined window (typically 7 to 14 days in Georgia) during which a buyer can inspect the property, review documents, and cancel the contract for any reason with full earnest money refund. Savannah investor contracts should always include a due diligence period sufficient to complete inspection, appraisal, and insurance quoting.
Title Insurance
Title insurance protects the buyer and lender against defects in the property’s ownership history — undisclosed liens, forged deeds, boundary disputes. In Georgia, the buyer typically pays for lender’s title insurance; owner’s title insurance is optional but recommended for investors. A Savannah closing attorney handles title search and insurance — see the Team 912 local pros page.
Closing Attorney
In Georgia, real estate closings are conducted by a licensed attorney (unlike many states where title companies handle closings). The closing attorney represents the lender in most transactions, conducts the title search, prepares the closing documents, and disburses funds. Savannah investors should work with an attorney experienced in investor transactions — DSCR closings, LLC vesting, and 1031 exchanges have specific requirements.
Flood Zone
A flood zone is a FEMA-designated area with a specified annual probability of flooding. Zones A and V require flood insurance for federally backed mortgages; Zone X does not. Large portions of coastal Chatham County, Tybee Island, and Isle of Hope sit in flood zones, and insurance costs can run $1,500 to $5,000+ per year depending on elevation and flood zone. See the Team 912 flood zone and insurance primer.
Elevation Certificate
An elevation certificate is a FEMA document showing a property’s lowest floor elevation relative to the base flood elevation. Elevation certificates dramatically affect flood insurance pricing — a property elevated above the base flood elevation can pay 50 to 80 percent less than an identical property below. Pulling the elevation certificate during due diligence is essential on any coastal Savannah investment.
HOA (Homeowners Association)
An HOA is a private organization that governs a residential community, collects dues, and enforces covenants. Pooler, Richmond Hill, and Skidaway Island properties commonly have HOAs; most Savannah Historic District properties do not. For investors, HOA restrictions on short-term rentals, tenant occupancy, and exterior changes can make or break a deal — read the covenants during due diligence.
Property Management Fee
Property management fees for long-term rentals in Savannah typically run 8 to 10 percent of collected rent, plus a leasing fee equal to half a month’s to a full month’s rent when a new tenant is placed. Short-term rental management runs 20 to 30 percent of gross revenue. Factor these into underwriting — self-managing is viable in-market but rarely works for out-of-state investors.
Ready to Put These Terms to Work
Glossary terms are useful only when they connect to actual deal decisions. The Team 912 brokerage works with active Savannah investors every week running the math these terms describe — DSCR on a Pooler turnkey, BRRRR on a Starland District Victorian, 1031 exchange proceeds rolling into a Richmond Hill STR without regulatory risk, cost segregation on a $600,000 Tybee STR.
If you have capital to deploy and want a local team that knows which of these terms matter most for your specific deal, call the brokerage at (912) 756-5888 or read the full analysis of whether Savannah is a good market for your strategy.