Why Determine A Real Estate Cap Rate?
If you are one of the hardy souls who are still investing in real estate, you have probably run across the term, cap rate, in your research. This is the real estate capitalization rate, which is can roughly determine the profitability of a property, or conversely, how much a profitable property could sell for. Now there is not a standard cap rate that means a property is a good investment, but rather the number is a guide that can be compared to the rate of other area properties.
