The only question I get asked more than, “Hey Kris can you cut your commission?” 😂 is “What is a CAP Rate?” You would think only novice investors are puzzled in calculating a CAP Rate but oftentimes that question is coming from a seasoned investor who either has been too embarrassed to ask someone along the way, or never took the time to find out for themselves.
So I was inspired to create 5 Minute Multi-Family, a weekly video series where my team and I are going to break down the major markers an investor would use to evaluate a multi-family asset. In the coming weeks, we will also discuss the most common questions we get when it comes to the day to day management of multi-family properties…and tenants!
WATCH NOW as I break down for you once and for all how to calculate a CAP Rate.
I hope you find this video informative and helpful! Be sure to forward this video to anyone that might benefit from the information (like that one child who doesn’t take an interest in the family business, but yet it paid for their college).