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Updated almost 11 years ago on . Most recent reply

Eric Siu's profile image
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Eric Siu
  • from Santa Clarita, California
  • Member since Mar 15, 2014
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Eric Siu
  • from Santa Clarita, California
  • Member since Mar 15, 2014
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Eric Siu
  • Santa Clarita, CA
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Real Estate Deal Analysis & Advice

Cap Rate and the 50/2 rule?

Eric Siu
  • Santa Clarita, CA
Posted

Hi all, I've been curious as to how the above concepts relate to one another:

I've been reviewing various commercial real estates and they then do provide information related to the "cap rate" and NOI of the property. However, I see people here using the 50%/2% rules. Is there a way to essentially translate one set of information relative to another? For instance, how does cap rate relate to the 50%/2% rule? Thanks in advance!

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Ben Leybovich
  • Rental Property Investor
  • from Phoenix/Lima, Arizona/OH
  • Member since Aug 27, 2012
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Ben Leybovich
  • Rental Property Investor
  • from Phoenix/Lima, Arizona/OH
  • Member since Aug 27, 2012
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Ben Leybovich
  • Rental Property Investor
  • Phoenix/Lima, Arizona/OH
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Ben Leybovich
  • Rental Property Investor
  • Phoenix/Lima, Arizona/OH
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You'll find all of the answers here:

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