Cap rate is a real estate term that refers to the ratio of the net operating income (NOI) generated by a particular property to the property’s sales price. Cap rates are used by investors as one indication of how desirable a particular property may be as an investment. There are two parts to a cap rate: capitalization rate and value.
Ref: https://www.cherifmedawar.com/what-is-a-good-cap-rate-how-to-calculate-it/
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