Cap rate (capitalization rate) measures a property's rate of return based on net operating income relative to property value.

What cap rate should I look for?

Cap rates of 5-10% are common. Higher cap rates suggest higher returns but potentially higher risk.

Cap Rate Calculator

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What is cap rate?: Cap rate (capitalization rate) measures a property's rate of return based on net operating income relative to property value.
What cap rate should I look for?: Cap rates of 5-10% are common. Higher cap rates suggest higher returns but potentially higher risk.