Sep 14 • General discussion
Real Estate Investing
Understanding Cap Rate 📊
Cap rate (capitalization rate) is a key metric in real estate investing. It's the ratio of net operating income (NOI) to the property's value.
Cap Rate = NOI / Property Value
A higher cap rate generally indicates higher potential returns, but also higher risk. Understanding cap rates can help you evaluate investment opportunities and make informed decisions.
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Real Estate Investing
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