Aaron Douglas
Aaron's latest writings
Test Your Cap Rate Knowledge
by Tim O'Brien What is a cap rate? It is simply the net operating income (NOI) of the property ( before any debt service) divided by the price and it equates to a percentage rate of return if the investor were to purchase a property with no debt (all cash). Example: NOI = $100,000, Price $1,200,000 CAP rate = $100,000/$1,200,000. Result: Cap Rate = 8.3%. Supply and demand and the cost of debt are two factors that affect... (posted by Aaron 4 years 10 days ago.)
by Tim O'Brien What is a cap rate? It is simply the net operating income (NOI) of the property ( before any debt service) divided by the price and it equates to a percentage rate of return if the investor were to purchase a property with no debt (all cash). Example: NOI = $100,000, Price $1,200,000 CAP rate = $100,000/$1,200,000. Result: Cap Rate = 8.3%. Supply and demand and the cost of debt are two factors that affect... (posted by Aaron 4 years 10 days ago.)
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