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Updated almost 10 years ago on . Most recent reply

David Y.'s profile image
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David Y.
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  • from Sugar Land, Texas
  • Member since Feb 2, 2015
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David Y.'s profile image
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David Y.
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  • from Sugar Land, Texas
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David Y.
  • Investor
  • Sugar Land, TX
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Real Estate Deal Analysis & Advice

CAP rate vs 2% rule

David Y.
  • Investor
  • Sugar Land, TX
Posted

Does anyone know if 2% rule is the same thing as 24% cap rate?  Thank you so much!

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Account Closed
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Account Closed
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Replied
Originally posted by @David Y.:

Does anyone know if 2% rule is the same thing as 24% cap rate?  Thank you so much!

It is not. 2% is one month rent ratio to purchase price. Cap rate reflects the ratio of NOI to purchase price.

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