What Is Cap Rate and Why Is It Used to Value Investment Properties?
McKissock
OCTOBER 17, 2021
Cap rate is one of those things you hear all the time in the marketplace, but many people don’t know exactly what it means. What is cap rate? It refers to the capitalization rate and is the net operating income divided by the cost. It’s expressed as a percentage. percent capitalization rate. But what does that mean? So, what is cap rate?
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