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Updated about 5 years ago on . Most recent reply

User Stats

110
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33
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Matt Bailey
  • Investor
33
Votes |
110
Posts

What does a cap rate of 7.9% tell you about a duplex?

Matt Bailey
  • Investor
Posted

What does a cap rate of 7.9% tell you about a duplex?

How do you use this information?

thank you 

Most Popular Reply

User Stats

123
Posts
79
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Ralph Justiz
  • Realtor
  • Edmond, OK
79
Votes |
123
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Ralph Justiz
  • Realtor
  • Edmond, OK
Replied

The net income the property produces annually is 7.9% of the purchase price.

I.E. if the purchase price is 100K, the property produces 7,900 dollars every year after expenses are paid for.

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