47+ Whats A Good Cap Rate In Real Estate Gif. The cap rate is expressed as a percentage, usually somewhere between 3% and 20%. Here's the real definition, how to calculate a good cap rate, and more.
Also, cap rates are highly location dependent. Although there are many variations. It's consistent throughout real estate that the terms used have a general understanding in the market, but are in many cases understood differently.
Often in real estate, cap rates for rental properties may shift without any change to the actual property or surrounding area but only as a result of a change in interest rates.
If another duplex had a cap rate of 9.8%, it would probably be a better deal. When you understand how cap rates work and to use them to your advantage, you make a lot of money in real estate. While you might think a high cap rate is a great indicator of success, ailon has jamie wiebe writes about home design and real estate for realtor.com. Cap rate works best for rental properties and may not be as helpful in other scenarios.