What Is CAP Rate?

could someone please explain this to me? NOI also please.

Comments(4)

  • IBuyHousesInc21st February, 2006

    capitalization rate:

    The rate of return a property will produce on the owners investment.


    net operating income (NOI):

    The income projected for an income-producing property after deducting losses for vacancy, collection and operating expenses.
    [addsig]

  • rollwitlouie9th March, 2006

    to get the cap rate (capitalization rate) you would take sales price divided by the net operating income that equals cap rate, im pretty sure im remembering that right

  • rollwitlouie9th March, 2006

    thank you for the corection that is write sorry

  • anoutsidedog9th March, 2006

    thanks again guys

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