CAP Rate in Real Estate Explained - The Simple Version
What is a CAP Rate? The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value.
Capitalization rate is a real estate valuation measure used to compare real estate investments.
To compute the CAP Rate take the NOI (Net Operating Income) and divide by the purchase price. (expressed as a percentage)
To get a FREE copy of a income property analysis spreadsheet, download it at: http://www.realestate365.net
If you need any help analyzing rental property, acquiring your first or next deal or you are ready to do a 1031 into your next income property, contact me a call at:
720-201-5402
[email protected]
Follow Me on Social Media:
FaceBook: brentonhanesrealtor
Instagram: Brenton_Hanes_Realtor
#MultiFamilyInvesting #CapRate #CapitalizationRate #MultiFamily #RentalPropertyInvesting #RentalProperties #CashFlow #RealEstate #RealEstateInvesting #denverrealestate #reantalpropertyanalysis #cashflow #coloradospringsrealestate #denver