CAP Rate
The RECC Podcast - Ein Podcast von Aurélien Bonin
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rate of return of an investment property based on the income (NOI) that the property is expected to generatesay you buy a property for $1M, at a 10% cap, means NOI is $100,000/yearallows to compare investments with each otherthe lower the cap rate, the more expensive the propertyyou make money in the differential between the cap rate and the interest rate on the debt
