How to Calculate Capitalization Rate (CAP Rate) for Commercial Real Estate

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Knowing the capitalization rate is essential in determining whether you have a profitable commercial real estate deal. Find out the formula for calculating the cap rate here!
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So, what is it about the CAP rate that is important? Is 7.4% good or too low? What % should we be shooting for?

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I’m confused as to why the mortgage isn’t considered an expense

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