Cap Rate or Capitalization rate is the percentage return calculated by dividing income by the property cost or value. This metric is utilized in single family rental investment property and other types of commercial real estate.
If after learning a bit more about Cap Rates you are curious to see how your current Investment Portfolio would benefit from performing a 1031, then I recommend signing up to receive a FREE 1031 Sizing from Conatus.
This sizing gives you info about the value of replacement properties you need to purchase and the amount of related debt on this purchase to fully defer your capital gains associated tax liability.
As an added benefit you will receive a comparison of your current income vs potential replacement property income that includes an assessment of income tax benefit between the
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