Learn how to calculate Cap Rate for rental properties in Fargo, North Dakota.
Learn how to calculate cap rate on rental properties in Fargo.
James walks you through, step-by-step, how to calculate capitalization rate (cap rate) on rental properties in Fargo including all the sub-calculations including Gross Potential Income (GPI), Gross Operating Income (GOI), Operating Expenses (OpEx), and Net Operating Income (NOI). And, where to get every number you'll need to do the calculations yourself.
Find out what a typical cap rate might be including some historical cap rates for a variety of investment types.
Learn how cap rate is similar to Cash on Cash Return on Investment and, more importantly, how it is different.
Plus, James will show you how to have The World's Greatest Real Estate Deal Analysis Spreadsheet™ (free spreadsheet download) do the cap rate calculation for you.
See the cap rate calculation with the newest spreadsheet: James's Visual Cap Rate Calculator for Rental Property™ and the Improve Cap Rate Focuser™ to see where to focus your energy to improve cap rate with the least effort. Or, see another new spreadsheet: Rental Portfolio Cap Rates for tracking cap rates on properties in your portfolio.
Watch the video version of this class:
Resources Mentioned In Class
- Return Quadrants™ - Learn about all the different Return Quadrants™ and how we use them to show you how a property is performing.
- Fargo, North Dakota Real Estate Modeling - Click on the link to copy any Scenario for Fargo, North Dakota to have James walk you through any calculation including Cap Rate for any property used in the modeling.
What is Fargo Real Estate Investing & Real Estate Financial Planning™ Podcast?
Learn all about investing in real estate in Fargo, North Dakota with a combination of real estate financial planning and modeling with numbers specific to Fargo plus syndicated, more generalized recordings of live and pre-recorded real estate investing classes (not all specific to Fargo).