A capitalization rate, or cap rate, is a measure of the rate of return on a commercial real estate investment. It is commonly used to evaluate the potential profitability of a property and to compare the relative value of different properties. To calculate the cap rate for a property, the net operating income (NOI) is
A value-add multifamily investment is a real estate strategy in which an investor purchases a property with the potential for increased revenue through renovations and improvements. This type of investment is attractive to investors because it allows them to increase the value of the property and generate higher returns on their investment. One of the
A cap rate, short for capitalization rate, is a formula used to assist in the analysis of commercial real estate. It’s formula is: Cap Rate = Net Operating Income (NOI) ÷ Price Net operating income can be defined simply as income – expenses but not including financing. Price refers to the purchase price or the
