Summary
Net yield compares annual rent after operating expenses with the property value used in the model, usually the after-repair value where a refurb is modelled.
How to apply it when assessing a deal
Use net yield to check whether the asset itself produces enough income before focusing on leverage. A strong net yield gives more room for debt costs, voids and tax. A weak net yield may still work as a capital growth or flip case, but it is less forgiving as a long-term hold.