Real estate investing is undoubtedly one of the best and safest ways to make money compared to shares and stocks. In fact, 90% of the world’s millionaires are involved with this particular activity.
Of course, not everyone who invests in real estate will see amazing results or even results at all. The key to successful real estate investing is knowing how to properly find and evaluate a property.
Now, there are four main ways to calculate the profitability of a real estate investment. These include cash on cash, net operating income, the rate of return, and cap rate. In this article, we’ll focus entirely on the cap rate. (more…)