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  2. Capitalization rate - Wikipedia

    en.wikipedia.org/wiki/Capitalization_rate

    Capitalization rate (or "cap rate") is a real estate valuation measure used to compare different real estate investments. Although there are many variations, the cap rate is generally calculated as the ratio between the annual rental income produced by a real estate asset to its current market value .

  3. Common area maintenance charges - Wikipedia

    en.wikipedia.org/wiki/Common_area_maintenance...

    Thus, a yearly 5% cap would grow the cap each year by 5%, so that the first year it was a 5% cap, the 2nd year a 10% cap, the third year 15, and so on. Compounded caps allow the yearly percentage increase of the CAM Cap to grow at a compounded rate each year. If actual CAM charges are lower than the cap, the cap does not apply. [2]

  4. Real estate benchmarking - Wikipedia

    en.wikipedia.org/wiki/Real_estate_benchmarking

    Cash break even ratio: Estimates how vulnerable a property is to defaulting on its debt should rental income decline. Loan-to-value ratio: Calculates the ratio between the loan balance and the market value of a property expressed as a percentage. Capitalization rate: Measures the earning ability of an income-producing property.

  5. States with the Highest and Lowest Property Tax Rates - AOL

    www.aol.com/states-highest-lowest-property-tax...

    The average property tax rate is 0.56%, one of the lowest rates in the country. The average homeowner will pay around $1,707 - more than $1,000 less than the national average.

  6. Real Estate Executive Says These 5 Markets Are Where ... - AOL

    www.aol.com/real-estate-executive-says-5...

    Cap rates, a key metric in commercial real estate, represent the ratio of a property’s net operating income to its market value. Higher cap rates generally indicate greater potential returns but ...

  7. Gross rent multiplier - Wikipedia

    en.wikipedia.org/wiki/Gross_Rent_Multiplier

    An 8.33 GRM calculated on annual rents suggests the gross rent will pay for the property in 8.33 years. The common measure of rental real estate value based on net return rather than gross rental income is the capitalization rate (or cap rate). In contrast to the GRM, the cap rate is not a multiplier but a rate of annual return.

  8. Real estate investing - Wikipedia

    en.wikipedia.org/wiki/Real_estate_investing

    This typically includes gathering documents and information about the property, inspecting the physical property, and comparing it to the market value of similar properties. [6] A common method of valuing real estate is by dividing its net operating income by its capitalization rate, or CAP rate. [7]

  9. Income approach - Wikipedia

    en.wikipedia.org/wiki/Income_approach

    This is simply the quotient of dividing the annual net operating income (NOI) by the appropriate capitalization rate (CAP rate). For income-producing real estate, the NOI is the net income of the real estate (but not the business interest) plus any interest expense and non-cash items (e.g. -- depreciation) minus a reserve for replacement.