Quote:
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Originally Posted by tnguyen24
if CAP rate is not a good way to evaluate property, how come it is used so often?
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Because it is an easy number to calculate.
To figure out if the property is going to make you money you need to factor in a lot of stuff. Included you need to know about the tax savings, what you lost potential income is on your down payment, apprecation rate, depreciation, vac factor, repair factor, and so on.
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