how does one figure out the CAP rate of a commercial property?

In General Area - Asked by james r. - Jun 10, 2010
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Answer(s)

JACQUI G.
Broker/Agent
Tustin, CA

how do you figure the cap rate on property?

Jun 10, 2010
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Farschin S.
Owner/Investor
La Jolla, CA

It is the net income divided by the asking price or price paid. Net income is the total gross income minus all building expenses except mortgage expenses and income taxes.

Jun 10, 2010
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Tony M. G.
Broker/Agent
Ontario, CA

I recommend taking a CCIM Introductory course.

Jun 15, 2010
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