X Times the rent. Is there anything behind it.
In Brooklyn I hear people buying buildings based on how many times the rent it is. For example if purchase price is 8 times the rent its considered a great deal, If its 10 times the rent not so great.
I wanted to understand this more, if someone can please explain this concept.
Most Popular Reply
Go up the search bar and search CAP Rate. I belive this is what they are talking about.