What is a Cap Rate?

The mortgage guy told me there is a cap of 2/2.5% on builder incentives for investment mortgages. 

hello guys, identified a Property in cook county that matches our Criteria. but i've been reading a Lot about taxes, is there a Cap for how much they can raise?

Those factors depend on the buyer more than the property.It is also worth noting that a market has a CAP rate and you can calculate CAP rate on a specific property in that market.

But for your income property, they'll give greatest weight to the income method (the one based on NOI and cap rate as you said), as they should.You wrote "NOI divided by the Cap Rate" but keep in mind, the appraiser will use what they feel is a market cap rate, not the cap rate when you purchased the property or a cap rate you want them to use.

Probably the only way you get there, "fast" as you put it, is to use that 250 as downpayment and leverage another million against it. 1.2 million with a cap rate of 9 - if you can find it - would get you $108k before you pay your note, and your note is going to be about $50-60k depending on your rates, which leaves you 48k-58k free.

So if it is a cap rate of 3%, you can expect a 3% return on investment per year?

I'd say go ahead and get started worry about hitting a cap later.

Using established value of made up property from a CAP rate of 6% say $1 million dollars.If hard costs are $500k and soft costs are $100k$1 million minus $500k minus $100k would give us a property worth of $400k.

I've tried calling on a few brokers in that area to see if they would know and I haven't found anyone who knew let alone some who didn't know what a cap rate was, its a little disappointing but I won't stop unit I get it. by the way I know how to calculate a cap rate for a particular property(NOI/value) I'm particularly looking for the "Market cap"?