December 1, 2024 - 18:29
In the world of real estate investing, the capitalization rate, commonly known as cap rate, is often touted as a key metric for evaluating property performance. However, industry experts Matt Mittman and Eric Rehling emphasize that relying solely on cap rate can be misleading for investors.
Cap rate is calculated by dividing a property's net operating income by its current market value. While this figure provides a snapshot of potential returns, it does not account for several critical factors. For instance, cap rate does not consider future income growth, property appreciation, or the costs associated with property management and maintenance.
Moreover, local market conditions and economic trends can significantly impact a property's performance, making it essential for investors to adopt a more holistic approach. By looking beyond cap rate and incorporating other financial metrics and qualitative assessments, investors can make more informed decisions. Understanding the full picture is crucial for achieving long-term success in real estate.
July 19, 2025 - 04:34
Kevin Durant's Former Oklahoma City Townhouse Hits the Market at a Remarkably Low PriceTwo-time NBA champion Kevin Durant could afford to buy his old Oklahoma City townhouse more than a million times over. However, the property, which once belonged to the basketball superstar, has...
July 18, 2025 - 08:43
Weekly Real Estate Update for Darien and RowaytonIn the latest real estate report covering the Darien and Rowayton areas from July 10 to 17, 2025, the market continues to show signs of activity. Several properties are set to hold open houses this...
July 17, 2025 - 22:33
Foxfield Expands Its East Coast Holdings with New Mansfield Office AcquisitionMansfield, MA — Foxfield, a prominent real estate investment and development firm, has officially acquired the 9–11 Hampshire Street property, a spacious 155,348-square-foot Class A office...
July 17, 2025 - 03:57
Massive 112-Acre Equestrian Estate Hits the Market for $70 MillionThe Robert Taylor Ranch, an expansive 112-acre equestrian estate, has officially been listed for sale, making waves in the Los Angeles real estate market as the largest residential property to be...