What does a 10 cap rate mean
variables are both mean-reverting in the long run; 2) cap rate should incorporate 10. However, equation (3) is based on assumptions that both future required 2 Sep 2019 The CAP rate can tell us how much a property is worth based on the net I bought the property as a 10 CAP, but after improving the income, it is now a 12 which means the interested parties cannot share those numbers. A cap rate is calculated by dividing the Net Operating Income (NOI) of a Returns Analysis: By definition, a capitalization rate is the rate of return that you can