Without clear terms in promissory notes with punitive measures to set standards for performance, and security against the subject property, there's little incentive for timely repayment.🛑 Insufficient property equityLending without enough equity in the secured property as-is can leave you unable to recoup your investment in case of default.

I want my wealth to be measured in care and compassion, not by the digits in my bank account.

For example, Fannie Mae loans if an existing first mortgage is being paid off through the transaction, it must be at least 12 months old at the time of refinance, as measured by the note date of the existing loan to the note date of the new loan.  

Is it common practice in real estate just for simplicity sake/rule of thumb measurements, or is there something obvious to others that I am missing?

Cash flow is literally the last realization and area of importance, so cap rate for that is going to be a harder measure apples to apples with equities. 

The cap rate is just a measure designed to give an apples-to-apples comparison across deals.

(Source: Mercury News: California voters approve Prop 19, changing property tax breaks)They also learned from their loss in 2018 after a similar ballot measure was defeated, and came back with a few tweaks (and more money) to get this one (narrowly) passed. 

My offer, whatever it is I can help you with on the actual flipping process, writing a scope, avoiding CO's, measuring correctly for waste, managing a project, negotiating trade cost, and a network of vendors for projects to boot.

 16 terms you need to know in commercial real estate:1.Internal Rate of Return (IRR): A metric used to estimate the annualized return on an investment based on the timing and magnitude of cash flows.2.Cash-on-Cash Return: The annual income generated by a property expressed as a percentage of the initial cash investment.3.Discount Rate: The rate used to discount future cash flows to their present value in financial models; often represents the required rate of return.4.Capital Expenditures (CapEx): The funds set aside for property improvements, renovations, or major repairs.5.Gross Operating Income (GOI): The total income generated by a property before subtracting operating expenses.6.Operating Expenses: The costs associated with managing and maintaining a property, including utilities, taxes, insurance, and maintenance.7.Debt Service Coverage Ratio (DSCR): A measure of a property’s ability to cover its debt payments, typically calculated as NOI divided by debt service.8.Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the property’s appraised value, used to assess risk in financing.9.Equity Multiple: A measure of the total return on an investment, calculated as the ratio of total cash flows to initial equity investment.10.Residual Land Value: The estimated value of land after deducting development costs and desired profit margins.11.Sensitivity Analysis: A technique used to assess how changes in key variables (e.g., rent, expenses, interest rates) affect financial model outcomes.12.Operating Pro Forma: A projection of a property’s income and expenses over a specified period, typically used for budgeting and financial analysis.13.Cash Flow Waterfall: A structured distribution of cash flows to different stakeholders in a real estate project, often involving equity investors, lenders, and developers.14.Leverage: The use of borrowed funds (e.g., a mortgage) to finance a real estate investment, potentially amplifying returns but also increasing risk.15.Equity Investment: The amount of money invested by equity partners or investors in a real estate project. 16.

For real estate investments with irregular cash flows, XIRR is generally preferred for its accuracy in measuring the true rate of return.