What's A Good Cap Rate For A Rental Property?, Useful Home Inspection Tip, Home Builder Sentiment Trend

What's A Good Cap Rate For A Rental Property?

Real Estate Expert & Best-Selling Author, Gerald Lucas discusses targeting an ideal cap rate for rental property in this installment of Ask Gerald A Real Estate Question

Real Estate Tip:

Check references and get a sample inspection report before you hire a home inspector.

Real Estate Insight:

Home builders sentiment fell slightly in April from an 11 year high in March.

Tell-Tale Sign Of A Real Estate Market Bubble, Cap Rate Explained, How Rising Prices Affect Real Estate Contracts

Tell-Tale Sign Of A Real Estate Market Bubble

Real Estate Expert & Best-Selling Author, Gerald Lucas reveals a tell-tale sign of a real estate market bubble in this installment of Ask Gerald A Real Estate Question

Real Estate Tip:

The Capitalization or Cap Rate for a property is the ratio between its net operating income (NOI) and the property’s value:

Capitalization Rate = Net Operating Income/Value

You can transpose the formula to solve for property value or net operating income:

Property Value = Net Operating Income/Capitalization Rate

Net Operating Income = Property Value*Capitalization Rate

Real Estate Insight:

If you sign a contract to buy property in a rising real estate market, you've already made money by the time you close