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Updated about 3 years ago,

Travis Oneill's profile image
Travis Oneill's profile image
Travis Oneill
  • Member since Sep 22, 2020
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26
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Travis Oneill's profile image
Travis Oneill's profile image
Travis Oneill
  • Member since Sep 22, 2020
Connect
Travis Oneill
6
Votes |
26
Posts
Starting Out

Understanding Cap Rate

Travis Oneill
Posted

16 Unit apartment building for sale

Price $825,000 at a 8.83% Cap Rate in Waterbury , CT

Please can anyone confirm for me.

Cap Rate is basically a fancy way of saying salary ?

Salary = Cap Rate x Purchase Price

Salary = 8.83% x 825,000

Salary = 72,847

Is this right ? Thanks!

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