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WHAT IS A CAP RATE?
The cap rate is a useful metric for quickly assessing the viability of an investment property, but it should be used in conjunction with other analyses and due diligence to make well-informed investment decisions.
The cap rate is a ratio that compares the net operating income (NOI) of a property to its current market value or purchase price. It is expressed as a percentage and provides a snapshot of the expected annual return on investment, excluding financing costs.
THE FORMULA
Cap Rate =
Net Operating Income
Current Market Value or Purchase Price
(
x 100
)
MORE FOR YOU
We offer personalized attention, outside-of-the-box thinking, proactive problem-solving, strategic planning, empathy, and leadership, and we believe in relationships first, then Real Estate.
COMMUNITIES
Danny specializes and services clients in the following cities and neighborhoods with a deep understanding of the real estate market in these communities.
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