CAP Rate is one of the most important indicators, if not the most important indicator, for real estate investors to evaluate deals. What CAP Rate gives us is an unbiased view when comparing properties side-by-side. To begin, let’s start off with the formula: CAP Rate = NOI / Property Price As you can see, the…
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NOI – Net Operating Income
There are several commonly-used metrics that a real estate investor uses to analyze the potential of any given opportunity. We will start with some basics and then gradually move into some of the more advance concepts. To begin the series, we will talk about Net Operating Income. Net Operating Income, or NOI for short, is…