US EditionHow to Calculate Cap Rate: Definition, Formula & Examples
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How to Calculate Cap Rate: Definition, Formula & Examples
Learning how to calculate a rental property’s cap rate helps you evaluate its potential income, weigh it against other investment opportunities, and make more pragmatic decisions. Failure to consider a property’s cap rate can come at a steep cost, as you could end up overpaying, underestimating risk, or falling short of anticipated returns. Keep reading to arm yourself with valuable information that will help you avoid the dreaded scenarios abov…
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