Glossary of Terms

Going-in Cap Rate 2015-11-10 08:00:00

Going-in Cap Rate

The cap rate based on the ratio of the first year of net operating income to the property purchase price. 

For example, if a property is expected to generate a first year net operating income (NOI) of $100,000 and is valued at $1,250,000, it would have a cap rate of 8.0% ($100,000 / $1,250,000).

 


Are DST & TIC Investments Right For Me?

Download the Free DST Guidebook