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Updated over 8 years ago on . Most recent reply

Kevin Malone's profile image
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Kevin Malone
  • from Springfield, Massachusetts
  • Member since Nov 25, 2016
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Kevin Malone's profile image
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Kevin Malone
  • from Springfield, Massachusetts
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Kevin Malone
  • Springfield, MA
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Hi I'm from Massachusetts

Kevin Malone
  • Springfield, MA
Posted
Can anyone please help me understand what a 10 cap is vs any other caps I have no idea .... I'm looking at a 4 plex online that says based off 10 cap.
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Jared Smith
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Jared Smith
  • Medford, MA
Replied

@Kevin Malone

Going off of @Steve Bracero a cap rate is the percentage of net operating income you receive on a properties purchase price (cash only). So to reiterate Steve, 40k NOI with a 400k purchase price (cash) is a 10 cap. 36k NOI with a 400k purchase is a 9 cap and so on.

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