what is cap rate?

I am new at this so any suggestions will be greatly appreciated.
In Buying Property - Asked by Konstantin M. - Dec 10, 2008
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Oklahoma City, OK

Cap rate is short for capitalization rate.
It is a ratio between of income (NOI) from a property and the value (usually price paid)

Dec 11, 2008
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Kirk S.
Lubbock, TX

See web page

Dec 11, 2008
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

CAp rate is the rate of return a reasonable investor would expect to earn on his/her money. It is commonly used in conjuction with net operating income to value a property via the income approach. Below is a link to my website www.fairviewlending.com that talks about Cap rates and the inverse relationship with value.

Dec 11, 2008
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Kevin B. R.
Amherst, OH

a myth.

Dec 19, 2008
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Chris S.
Coeur D'alene, ID

Think of it as the curb appeal of an investment. Its a starting point for evaluating a potential acquisition, but it's just that a starting point.

Jan 5, 2009
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