You may hear the term CAP Rate (CAP Rate = NOI ÷ Price) from time to time, especially when evaluating rental properties for sale. You may already know what it is, why it’s important and how to calculate it. But, do you know how to estimate a CAP rate in less than 10 seconds? If not, here’s a quick tip for estimating CAP rates that may save you a lot of time when sizing up your next potential investment property.
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