What is Cap Rate?
Cap Rate is how commercial and multifamily deals are priced. It strips out financing so you can compare assets apples-to-apples.
General educational information, not legal, tax, financial or personalized investment advice. Results are not guaranteed. Independently verify information and seek independent professionals as appropriate.
How to read it
Higher cap rates usually mean higher perceived risk; lower cap rates mean premium markets with stable income. Context is everything.
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