Part 3: What’s the Right Cap Rate?

Understanding Cap Rates: A Practical Guide for All Levels

Part 3: What’s the Right Cap Rate? How to determine the right cap rate for your property

You hear the term “cap rate” all the time. Maybe you assume you understand it—or avoid admitting that you don’t. Whether you're a beginner or experienced, a clear refresher is worth your time. This series breaks it down:

• Part 1: What is a Cap Rate? The basics or calculating and understanding cap rates
  
• Part 2: Why Does It Matter? It’s one number, but Sellers and Buyers see it differently
  
• Part 3: What’s the Right Cap Rate? How to determine the right cap rate for your property
  
• Parts 4A & 4B: What Everyone Gets Wrong. Conflating ROI with Cap Rate can add up to a lot of money
  
• Part 5: Where the Term Comes From