What is a cap rate? - Posted by GerryH VA

Posted by GerrryH VA on January 23, 2002 at 22:07:37:


Thanks for info. Even after reading it I am still a little unsure of EXACTLY what it means. Being an engineer, I understand the formula, just not the full reason for the formula. I’ll work on it:)


What is a cap rate? - Posted by GerryH VA

Posted by GerryH VA on January 23, 2002 at 17:48:44:

I usually use net operating income (NOI) as a basis for buying properties but I had a guy mention cap rate about a mobile home park. What is he talking about? Also, what is a good ratio for debt (incurred on a MHP) vs. NOI or is there such a ratio?

Also, is there a good due diligence checklist published somewhere for buying a MHP. Thanks.


Look at this Article… - Posted by J.P. Vaughan

Posted by J.P. Vaughan on January 24, 2002 at 01:09:37:

“Crash Course on Commercial Real Estate”


Re: What is a cap rate? - Posted by lyal

Posted by lyal on January 23, 2002 at 19:26:09:

Go to the financing forum and search the archives for cap rate and you’ll get an education. Good to do this for most questions actually before posting them. There is a wealth of info in these archives and many questions have been asked and answered long ago (asked by people like me…B-]).
For due diligence info go to my answer to Mike further down in the forum with a subject of “Purchasing a Small Park” for pointers to free articles on this site that go into great detail on what to look for.
All the best, Lyal