What is a cap rate? A cap rate (or capitalization rate) is the net operating income divided by the price of a property. If you have a $100,000 property and its net operating income is $10,000 the cap rate for this property is 10%.
What does this mean to you? How have cap rates affected the current real estate boom?
Continue Reading 4 comments Thursday, Oct. 5, 2006
by Ken
