What's a Cap Rate?

What's a Cap Rate?

Interested in investing in real estate?

You’ll need to understand cap rates.

A property’s cap rate (or capitalization rate) is an estimate of its rate of return. To find a property’s cap rate, divide the net annual income you expect it to generate by its current market value.

Cap rates are a great tool for comparing properties, but they don’t tell the whole story! You also need to account for financing costs, management expenses, and more.

Are you searching for an investment property that will pay off? We can help! Contact us today for a free consultation.

916.799.0108 or [email protected]

#realestatetips #housingmarket #homebuyertips #2022goals #homebuyer #realtortips #personalfinance #realestate #realestateagent #realestateinvesting #realestateinvestment #realestateinvestor #FairOaksRealtor #FairOaksRealEstate #SacramentoRealEstate

要查看或添加评论,请登录

Michael J. Shumaker的更多文章

  • 7 Tips To Maximize Your Home's Sale Price

    7 Tips To Maximize Your Home's Sale Price

    The real estate market is cooling. But it’s still possible to score a great offer for your home.

  • Smell to Sell

    Smell to Sell

    Scent has a powerful impact on our emotions—and it can make or break how potential buyers react to your home. That’s…

  • Price-to-Rent Ratio

    Price-to-Rent Ratio

    Do you know your community’s price-to-rent ratio? It compares the cost of renting versus buying a home. To calculate…

  • What's the 5 Year Rule?

    What's the 5 Year Rule?

    You need to know about the 5-year rule. Some financial experts caution against buying a home unless you plan to own it…

  • Buy Now or Rent Longer?

    Buy Now or Rent Longer?

    Is it better to buy or rent a home? Despite what you may hear, there’s no single right answer. But, don’t panic—we’re…

  • Would You Move For Your Pets?

    Would You Move For Your Pets?

    Would you move for your pet? According to the US-based National Association of REALTORS, 43% of households would be…

  • Buy Now or Rent Longer?

    Buy Now or Rent Longer?

    Is it better to buy or rent a home? Despite what you may hear, there’s no single right answer. But, don’t panic—we’re…

  • 8 Strategies to Secure a Lower Mortgage Rate

    8 Strategies to Secure a Lower Mortgage Rate

    8 Strategies to Secure a Lower Mortgage Rate Mortgage rates have been on a roller coaster ride this year, rising and…

  • 10 Pro Tips for a Smooth Home Move

    10 Pro Tips for a Smooth Home Move

    The process of moving into a new home can be both exhilarating and exhausting. Fortunately, you don’t have to do…

  • 5 Ways to Write a Winning Offer in Today’s Real Estate Market

    5 Ways to Write a Winning Offer in Today’s Real Estate Market

    How do you write a winning offer in this market? A high offer price gets attention—but it doesn’t guarantee you’ll get…

社区洞察

其他会员也浏览了