The capitalization rate, or cap rate, is a key metric used in real estate to evaluate the potential return on an investment property. Expressed as a percentage, the cap rate helps investors compare ...
What is the likelihood of a real estate investment being profitable? Many investors ponder this question and use metrics like the cap rate to determine their odds. Knowing the cap rate can help you ...
When investing in multi-family real estate, understanding capitalization rate, usually referred to as CAP rate, is crucial for making informed decisions. This rate serves as a benchmark for evaluating ...
Cash-on-cash return measures the rate of return on cash invested in a property, focusing purely on cash flows. It's calculated as annual pre-tax cash flow divided by total cash invested for a given ...