In the world of real estate investing, few metrics carry as much weight as the capitalization rate, more commonly known as the cap rate. This simple yet powerful cap rate formula gives investors a sharp lens through which to evaluate income-generating properties. By dividing a property’s net operating income (NOI) by its current market value, the cap rate offers a clear, percentage-based insight into the return potential of an investment. The real strength of the cap rate lies in its ability to provide quick comparisons between various properties, regardless of their location or type. Whether you're looking at an apartment building, an office space, or a retail strip, the cap rate levels the field. To get more information click here #caprateformula
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