3 an Explanation of How the Amount Due on the Monthly Billing Capeevansville Form

Instructions and help about 3 An Explanation Of How The Amount Due On The Monthly Billing Capeevansville

[Music] one of the most popular tools investors use to determine price and value is the capitalization rate or commonly referred to as cap rate in short the cap rate is the relationship between the annual net operating income noi a property produces and the price of the property let's quickly talk about noi the noi is the income remaining after all taxes insurance and operating expenses are paid an example a property owner collects all the rents each month and then pays taxes insurance and expenses associated with owning the property the income remaining is the noi for that month to determine the cap rate you use the annual noi now for example if the annual noi of a property is $60,000 and the price of the property is a million the math would look like this the annual net operating income of $60,000 divided by the $1 million price of the the property equals a cap rate of 006 so cap rate is 6% the cap rate can be a personal decision for investors as it represents their belief of the ris