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Easy Strategies to Diversify Your Portfolio With Real Estate Investing With Nate Coughran | Ep 31

Strategy Meets Finance

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Cap Rate - What Is It?

Cap rate is just looking at the NOI divided by the properties purchase price. So if you bought a property for $1 million and it produced $100,000 of NOI in that first year, that means the cap rate would be 10%. Got it. Yeah, and then that makes sense and that's a great explanation. That's the interesting thing too about leverage is what you alluded to. I mean, if you think about it and you say, okay, look, my mortgage is $2,000 a month. And the mortgage is fixed for whatever period that you choose to fix it. It doesn't matter what goes on out there in the market with inflation. Grocer

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