cap rate formula varies and depends on a few parameters

来源: 于 2011-12-09 16:30:10 [博客] [旧帖] [给我悄悄话] 本文已被阅读：次

For the example A (SFH, simplest case), roughly,

cap rate = (annual cash flow - annual rent * 0.05) / cash down

= 12 * (400 - 1800*0.05) / 37750

= 9.854%

 

Note: The parameter 0.05 means that 5% of your rent will be lost for vacancy and repairs (during and after rent). I would use larger number like 7% for this.