• Kirill Perelyguine

What is Capitalization Rate?

Capitalization Rate: Also known as Cap Rate is your net operating income divided by the sales price. It's measure of profitability of an investment property. Cap rates tell you how much you would make on a investment if you paid all cash for it; financing and taxations are not included: Cap Rate = Net operating income /sales price.

©2020 by Commercial Real Estate Toronto | Real Estate Services Ontario |  INVSTY Proudly Canadian Real Estate Company