Tag: cap rate

30 Seconds To Determine If A Multifamily Investment Property Is Worth Your Time

“What’s the cap rate?” is the most common first question I’m asked about a new listing by potential investors. Many times (not all the time), there are investors that say they pass...

Cap Rates Explained: How Important Are They?

A capitalization rate, more commonly referred to as a cap rate, is a metric commercial real estate  investors use to analyze properties and calculate the rate of return. The c...

Cap Rates: A Highly Misunderstood and Imperfect Metric

By Andy Friedman   If I had a nickel for every time I’ve been told by a real estate investor that they will only consider a property with X cap rate or above, well, I’d have a...