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Updated almost 6 years ago on . Most recent reply

Figuring out Cap Rate
I have a question. When dividing cash flow from property cost to find the cap rate on a property, do we factor in only out of pocket spent or total cost including the loan. Practicing for now on the in laws new property, they purchased a house with a friend loan, but will spend about 10k O.O.P on rehabs. Thanks in advance!