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Updated about 19 years ago on . Most recent reply

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17
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Kamlesh G.
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17
Posts

Newb: ROI vs CAP Rate

Kamlesh G.
Posted

Whats the difference between ROI and CAP Rate.
I know that cap rate doesnt take into account the financing.
So how does the ROI account for financing.
The Property Analysis Tool gave me a 108% ROR aka ROI for a property i'm looking at and a CAP rate of 6.17, help me to understand this.
As well as the break down of ROR on appreciation and BTCF. Thanks!

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