If you’re an investor you’re looking for not only the best price on a property you’re also looking for the best cap rate and the best rate of return for your money.
What is a Cap Rate? It’s your net income divided by the purchase price. Read more about it here
What is Rate of Return? Return on investment is a measure used to estimate and evaluate the performance of an investment or to compare the performance of a number of different investments. To calculate ROI, the net profit of an investment is divided by the amount of money invested, and the results are expressed as a percentage or ratio.
If your money is sitting in a Credit Union accruing less than o1% interest an investment property may be a way to see a much higher rate of return.
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