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Updated almost 9 years ago on . Most recent reply

Seth Mosley's profile image
Seth Mosley's profile image
Seth Mosley
  • Rental Property Investor
  • from Franklin, TN
  • Member since Dec 27, 2014
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Seth Mosley's profile image
Seth Mosley's profile image
Seth Mosley
  • Rental Property Investor
  • from Franklin, TN
  • Member since Dec 27, 2014
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Seth Mosley
  • Rental Property Investor
  • Franklin, TN
44
Votes |
145
Posts
Real Estate Deal Analysis & Advice

Pro Forma Cap Rate

Seth Mosley
  • Rental Property Investor
  • Franklin, TN
Posted

Can someone explain to me the difference between Cap Rate and Pro Forma Cap Rate? As listed in the Rental Buy and Hold analysis program here on bigger pockets

(which has been great by the way! anyone else out there use it or do you have your own ways? i have been using an excel spreadsheet i custom built for what we need)

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Account Closed's profile image
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Account Closed
  • Investor
  • from Honolulu, Hawaii
  • Member since Nov 18, 2013
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Account Closed
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  • from Honolulu, Hawaii
  • Member since Nov 18, 2013
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Account Closed
  • Investor
  • Honolulu, HI
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Account Closed
  • Investor
  • Honolulu, HI
Replied

The only cap rate you should be concerned about is market cap rate. Potential NOI/market cap rate = market value.

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