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Old 05-17-2005, 08:55 PM
chachi chachi is offline
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Default Re: CAP rate & NOI ???????

Not exactly. If you were to pay cash for the property, $500k in this case, and it was a real 10% CAP, then you would expect that the property would produce 50K in income annually. That is not net of your expenses.

Using a true triple net leased property, you could expect that the 50K would be net to you. That is probably the only time CAP rates are a good way to compare properties.
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