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Updated almost 9 years ago,

Noman Tariq's profile image
Noman Tariq's profile image
Noman Tariq
  • from Philadelphia, Pennsylvania
  • Member since Feb 29, 2016
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67
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18
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Noman Tariq's profile image
Noman Tariq's profile image
Noman Tariq
  • from Philadelphia, Pennsylvania
  • Member since Feb 29, 2016
Connect
Noman Tariq
  • Philadelphia, PA
18
Votes |
67
Posts
General Real Estate Investing

CAP rate or COC Return

Noman Tariq
  • Philadelphia, PA
Posted

I dont like focusing too much on Cap Rates. I feel it is a misguided number. Instead, I prefer to use COC return.

It is the same concept if I have a trading account and i use my margin to calculate my profit/loss. In trading we typicall use Cash out/ (cash in+cost of debt)

any thoughts?

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