Do you own rental properties? Do you know how well those properties are performing? How do you measure your rental performance? A CAP rate, short for capitalization rate is a quick way to tell the economic viability of a rental property. CAP rate calculates the net operating income(income minus expenses) divided by the value of your property. In example 1 we see a rental property with a 1.8% capitalization rate which may not be the most profitable asset. In example 2 we see a rental property with a 4.9% capitalization rate, a high-performing asset in the Hawaii market. We can run a free in-depth property analysis of your assets.

Contact us to see how your rental properties are performing.