How to Analyze Real Estate Rental Properties: Capitalization Rate Explained

Tommy Desmond 01.17.2025

When you're analyzing a real estate deal for a rental property, one of the most common metrics you'll hear about is cap rate or capitalization rate.

Whether you're an investor, a realtor, an appraiser, or a broker, learning about cap rates is critically important because it's a common benchmark that someone else can use against you if you don't know it.


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