Calculating Cap Rate for Rental Properties: A Step-by-Step Guide

01/13/23 • 43 min

Bend Real Estate Investing & Real Estate Financial Planning™ Podcast

Learn how to calculate cap rate on rental properties in Bend.

James walks you through, step-by-step, how to calculate capitalization rate (cap rate) on rental properties in Bend including all the sub-calculations including Gross Potential Income (GPI), Gross Operating Income (GOI), Operating Expenses (OpEx), and Net Operating Income (NOI). And, where to get every number you'll need to do the calculations yourself.

Find out what a typical cap rate might be including some historical cap rates for a variety of investment types.

Learn how cap rate is similar to Cash on Cash Return on Investment and, more importantly, how it is different.

Plus, James will show you how to have The World's Greatest Real Estate Deal Analysis SpreadsheetTM (free spreadsheet download) do the cap rate calculation for you.

See the cap rate calculation with the newest spreadsheet: James's Visual Cap Rate Calculator for Rental PropertyTM and the Improve Cap Rate FocuserTM to see where to focus your energy to improve cap rate with the least effort. Or, see another new spreadsheet: Rental Portfolio Cap Rates for tracking cap rates on properties in your portfolio.

Watch the video version of this class:

https://realestatefinancialplanner.com/cap-rate/

Resources Mentioned In Class

Return QuadrantsTM - Learn about all the different Return QuadrantsTM and how we use them to show you how a property is performing.
Bend, Oregon Real Estate Modeling - Click on the link to copy any Scenario for Bend, Oregon to have James walk you through any calculation including Cap Rate for any property used in the modeling.

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Bend real estate investor podcast? Book a free consultation to discuss.

Learn how to calculate cap rate on rental properties in Bend.

Find out what a typical cap rate might be including some historical cap rates for a variety of investment types.

Learn how cap rate is similar to Cash on Cash Return on Investment and, more importantly, how it is different.

Plus, James will show you how to have The World's Greatest Real Estate Deal Analysis SpreadsheetTM (free spreadsheet download) do the cap rate calculation for you.

Watch the video version of this class:

https://realestatefinancialplanner.com/cap-rate/

Resources Mentioned In Class

Return QuadrantsTM - Learn about all the different Return QuadrantsTM and how we use them to show you how a property is performing.
Bend, Oregon Real Estate Modeling - Click on the link to copy any Scenario for Bend, Oregon to have James walk you through any calculation including Cap Rate for any property used in the modeling.

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Bend real estate investor podcast? Book a free consultation to discuss.

Previous Episode

Why You Still Might Want to Invest in Real Estate in Bend Despite High Prices, High Interest Rates, and Lagging Rents

Real estate prices in Bend are high. Mortgage interest rates are high. Rents are lagging in Bend. Is real estate a good investment in Bend right now?

In this special webinar James discusses why you might still want to invest in real estate in Bend despite high prices, high interest rates, and lagging rents.

James will discuss why Charlie Munger says that the first $100K is the hardest. Plus, why its not ALWAYS just about cash flow with real estate investments and why you still might want to invest in real estate in Bend despite our current market conditions.

James has modeled just over 300 different US cities for this class for you to choose from, jump right to Bend:

https://RealEstateFinancialPlanner.com/model/OR/Bend/

Watch the video version of this class:

https://realestatefinancialplanner.com/why-you-still-might-want-to-invest-in-real-estate-despite-high-prices-high-interest-rates-and-lagging-rents/

Resources Mentioned In Class

First $100K is the Hardest - Learn the surprising math behind why the first $100K is the hardest to acquire and what you should do about it.
Return QuadrantsTM - Learn about all the different Return QuadrantsTM and how we use them to show you how a property is performing.
Model - Select Bend, Oregon and see the Baseline NomadTM Scenario, 20%/25% down, and buying properties for cash and how it performs in your city.

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Bend real estate investor podcast? Book a free consultation to discuss.

Next Episode

How to Calculate Cash on Cash Return on Investment

Learn how to calculate Cash on Cash Return on Investment for rental properties in Bend.

James walks you through, step-by-step, how to calculate Cash on Cash Return on Investment for rental properties in Bend including all the sub-calculations including Gross Potential Income (GPI), Gross Operating Income (GOI), Operating Expenses (OpEx), Net Operating Income (NOI), and Cash Flow. And, where to get every number you'll need to do the calculations yourself.

Find out why it is hard to give you an idea of what a typical Cash on Cash Return on Investment calculation might be on properties.

Learn how Cash on Cash Return on Investment is similar to Cap Rate and, more importantly, how it is different.

Plus, James will show you how to have The World's Greatest Real Estate Deal Analysis SpreadsheetTM (free spreadsheet download) do the Cash on Cash Return on Investment calculation for you.

See the Cash on Cash Return on Investment calculation with the newest spreadsheet: James's Visual Cash on Cash Return on Investment Calculator for Rental PropertyTM and the Improve Cash on Cash Return on Investment FocuserTM to see where to focus your energy to improve Cash on Cash Return on Investment with the least effort. Or, see another new spreadsheet: Rental Portfolio Cash on Cash ROI for tracking Cash on Cash Return on Investment on properties in your portfolio.

Watch the video version of this class:

https://realestatefinancialplanner.com/cash-on-cash-roi/

Resources Mentioned In Class

Return QuadrantsTM - Learn about all the different Return QuadrantsTM and how we use them to show you how a property is performing.
Bend, Oregon Real Estate Modeling - Click on the link to copy any Scenario for Bend, Oregon to have James walk you through any calculation including Cash on Cash Return on Investment for any property used in the modeling.

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Bend real estate investor podcast? Book a free consultation to discuss.