CALCULATING THE CAP RATE

[Jason Chambers]

Can someone please explain the cap rate and how to calculate it according to my offering of a property.  I just purchased my first investment thanks to everyone on here and it went very very well.  I think I got lucky because I have no idea about the calculations of the cap rate.  So can someone please help me out with this. Thank you so much

[Anthony Kaleta]

Jason - Bigger Pockets has a ton of information/ resources to help you out. Check out the following link for a solid explanation of the Cap rate:

http://www.biggerpockets.com/renewsblog/2011/11/16/capitalization-rate-%e2%80%93-techniques-to-speed-up-your-decision-making-part-iii/

Otherwise, type 'Cap rate' in the search box (top right corner of the screen) and you'll find everything you're looking for and more in the search results.

Good luck.