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Updated about 6 years ago,

Thomas W.'s profile image
Thomas W.'s profile image
Thomas W.
  • Rental Property Investor
  • from Chicago, IL
  • Member since Dec 17, 2015
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User Stats

49
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13
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Thomas W.'s profile image
Thomas W.'s profile image
Thomas W.
  • Rental Property Investor
  • from Chicago, IL
  • Member since Dec 17, 2015
Connect
Thomas W.
  • Rental Property Investor
  • Chicago, IL
13
Votes |
49
Posts
Starting Out

Why do you exclude the mortgage payment from the cap rate?

Thomas W.
  • Rental Property Investor
  • Chicago, IL
Posted

It seems like you would want all expenses included right? As I understand it the cap rate is telling you what percentage of the total price you'll make back in a year?

So why would you exclude the mortgage payment because that IS an expense.

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