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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Cash on Cash return Posted by Ward-CA- on January 21, 2004 at 10:05 AM In Reply to: CAP Rate? posted by Narm on January 21, 2004 at 5:13 AM : Hi.. : I've heard people mention 10%, 12% CAP rate. I'm confused how we calculate CAP Rate. Any advice is really appreciated. Thanks in advance. ================= The cap rate, or capitalization rate is a measure of the rate of the annual cash return you’ll receive (before income tax) on your lump sum cash investment in some income property. It’s commonly referred to as the Cash on Cash Return and used frequently to compare the relative investment value of several like properties being offered for sale. Determining the capitalization rate for several different properties sounds simple, but is often difficult to calculate. That’s because criteria such as their respective Net Operating Expense, Income & Expense figures, etc. aren’t readily available. So that forces one to use guesstimates that can easily distort final answers. Follow Ups: Re: Cash on Cash return narm 7:51 AM, 01/22/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hi.. : : I've heard people mention 10%, 12% CAP rate. I'm confused how we calculate CAP Rate. Any advice is really appreciated. Thanks in advance. : ================= : The cap rate, or capitalization rate is a measure of the rate of the annual cash return you’ll receive (before income tax) on your lump sum cash investment in some income property. : : It’s commonly referred to as the Cash on Cash Return and used frequently to compare the relative investment value of several like properties being offered for sale. : Determining the capitalization rate for several different properties sounds simple, but is often difficult to calculate. That’s because criteria such as their respective Net Operating Expense, Income & Expense figures, etc. aren’t readily available. So that forces one to use guesstimates that can easily distort final answers. : : Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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