Re: CAP rate & NOI ???????
Exactly and it is also an easy number to manipulate. So, a broker or property owner might throw around a number like 8.5% CAP. That number might be based on Pro Forma numbers and might not be what the property is actually operating at. They might say, well, the rents are low but you can get $xxxx no problem. It is something that can be used to compare apples to apples, but you have to get in there and figure the numbers for yourself before you can use it. Make sense?
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