Using Cap Rate as an Analysis Tool for Investment Properties

If you’re new to real estate investing, you may feel overwhelmed and wonder how to determine which properties to buy. Optimally, you’d like to get a handle on which investments will be the most profitable before jumping in—and you can—by understanding how to calculate cap rate.

Calculating the market cap rate, or capitalization rate, is hands down the best place to begin, especially for real estate investors.

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