Learn how the terminal capitalization rate estimates property resale value at the end of the holding period, with examples ...

Cap rates, or capitalization rates, are a fundamental concept in commercial real estate that plays a crucial role in evaluating the profitability and potential return on investment of a property.

When investing in multi-family real estate, understanding capitalization rate, usually referred to as CAP rate, is crucial for making informed decisions. This rate serves as a benchmark for evaluating ...