@mannyawasom: Cap rate is a multiplier, not your return. Cap rate = NOI ÷ value. That makes it a pricing tool: it tells you what the market pays for each dollar of income. At a 5% cap, $1 of NOI is worth about $20 of value. So small NOI mistakes become big value mistakes. It leaves out renovation, reserves and acquisition fees. That's why it isn't a true return on your investment. Price with the cap rate. Judge the deal on your full cost. 🛠️ To speed up and sharpen your underwriting, check out the Underwriting Course and our other tools: 🔗 msadatainsights.com/products 🏢 See how XSITE Capital underwrites its deals: 🔗 xsitecapital.com #multifamily #underwriting #realestateinvesting #commercialrealestate #apartmentinvesting #caprate #cre101

Manny Awasom

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Friday 16 October 2026 17:57:12 GMT