Understanding Cap Rates | Questions with Ken #4
Ken McElroy Ken McElroy
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 Published On Dec 16, 2019

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Join Ken as he answers your questions regarding real estate. In this session, he discusses cap rates and how he uses them to evaluate his real estate investments.

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If you are interested in this topic you can find more information out at the links below.

Capitalization Rate Definition - Investopedia
https://www.investopedia.com › ... › Real Estate Investing
Oct 13, 2019 - The capitalization rate (also known as cap rate) is used in the world of commercial real estate to indicate the rate of return that is expected to be ...

What You Should Know About The Cap Rate - PropertyMetrics
https://propertymetrics.com › blog › cap-rate
Oct 3, 2018 - Cap Rate Definition The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value. So, for example, if a property recently sold for $1,000,000 and had an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%.

CRE 101: What is a Cap Rate? (Part 1) | Blog - Realty Mogul
https://www.realtymogul.com › knowledge-center › article › what-is-a-cap...
A property's capitalization rate, or “cap rate”, is a snapshot in time of a commercial real estate asset's return.¹ The cap rate is determined by taking the property's ...

What's a Good Cap Rate for an Investment Property? - Fundrise
https://fundrise.com › education › blog-posts › whats-a-good-cap-rate-for-...
When analyzing a potential investment property to determine the right cap rate, there are several core factors one can look at including location, asset type, and ...

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