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Inside The Real Estate Investor Mind – Capitalization Rate

January 25, 2010 By 3 Comments

Episode 194 of the daily Toronto Real Estate Musing video blog. George O’Neill vlogs about how real estate investors assess return on their investment (ROI) when deciding to purchase real estate properties, using Capitalization Rate (Cap Rate).

Cap Rate = (Net Operating Income) / (Purchase Price)
where: Net Operating Income: NOI = Gross Annual Income – (Taxes + Maintenance + Insurance)

If you are interested in Beach or downtown Toronto real estate or wish to discuss this topic further, please email George@GeorgeONeill.ca or leave a comment below.

Related posts:

  1. Inside The Real Estate Investor Mind – Cash on Cash Analysis
  2. Inside The Real Estate Investor Mind – Summary
  3. Inside The Real Estate Investor Mind – Payback Period
  4. Inside The Real Estate Investor Mind
  5. Investor Minute – Cap Rate
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Comments

  1. Scot says:
    February 28, 2010 at 3:08 pm

    As a first time home buyer looking into investment properties it really helped to understand how to approach the offer.

    Great quick, informative series

    Thanks

    Reply

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