Finance Flash Go! Episode #65: Capitalization Rate

Today on the Finance Flash Go! podcast, let’s chat about capitalization rates.

Listen to the full episode and subscribe here!

Capitalization rates, or cap rates, come into play when discussing real estate investing.

capitalization rate

Basically, the cap rate is a measure of return that you receive from an investment property.

Mathematically, it is equal to your net operating income (NOI) divided by the price that you bough the property for. And NOI is equal to your income from the property minus all expenses EXCEPT mortgage principal and interest.

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Jordan Frey MD, a plastic surgeon in Buffalo, NY, is one of the fastest-growing physician finance bloggers in the world. See how he went from financially clueless to increasing his net worth by $1M in 1 year  and how you can do the same! Feel free to send Jordan a message at [email protected].

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