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James Orr
  • Realtor
  • Fort Collins, CO
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Calculating Cap Rate for Rental Properties: A Step-by-Step Guide

James Orr
  • Realtor
  • Fort Collins, CO
Posted Jan 4 2023, 10:53

No Replies

  • 01/06/23 08:00AM - 09:00AM America/Denver
  • https://us02web.zoom.us/webinar/register/WN_Ii_5G0Q4TNe1dfubdIhiww
  • Free

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There are two types of buy-and-hold real estate investors: those who use capitalization rate (often abbreviated as "cap rate") and those who use cash on cash return on investment.

Cap rate is calculated by dividing net operating income by purchase price. If you already own the property, you can divide net operating income by the current value instead of purchase price.

In this special class, James will walk you through all the steps required to calculate cap rate, including how to calculate net operating income (NOI), operating expenses (OpEx), gross potential income (GPI), gross operating income (GOI), and more.

You'll also learn when cap rate is preferred to cash on cash return on investment, and vice versa. Plus, James will provide you with a copy of The World's Greatest Real Estate Deal Analysis Spreadsheet™, which will automatically calculate cap rate for you.

You'll learn how cap rates can vary depending on where you're investing, and much more.