what is the CAP rate?

In Buying Property - Asked by Frank I. - Jan 26, 2010
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Fontaine C.
Broker/Agent
Houston, TX

The cap rate or CAP rate is arrived at dividing the Net Operating Income by the Sale Price NOI/SP so if the Net Operating Income of a property is $100,000 and the price is $1,000,000, it would be a 10% CAP rate, or a 10% return from the property if you
paid all cash.

Jan 26, 2010
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