Cap Rate is equivalent to the return on investment you would receive if you pay cash for a property. The ratio between the net operating income produced by an asset and its capital cost (the original...12/5/2018
DefinitionCap Rate is equivalent to the return on investment you would receive if you pay cash for a property. The ratio between the net operating income produced by an asset and its capital cost (the original price paid to buy the asset) or alternatively its current market value.
