When investors put money into an investment property, what is the name for the return of principal?

The term for the return of principal when investors put money into an investment property is capital recapture. This concept refers specifically to the process through which an investor receives back some or all of the original investment amount, typically as the property generates income or appreciates in value.

Understanding capital recapture is essential because it directly impacts the overall return on investment. When investors sell the property, the principal is returned to them, which can be crucial for calculating profit and assessing the success of the investment.

In contrast, other terms in the question do not specifically refer to the return of principal. Capitalization generally relates to the process of determining the value of an income-producing property based on its income potential. Dividends pertain to payments made to shareholders from profits, which is more relevant in corporate stock investments rather than real estate. Net operating income represents the total income generated by the property minus operating expenses but does not include the return of principal to investors.