The Total Cap Rate if Sold Scenario Chart allows us to see what the Cap Rate would be if someone purchased the Property from us.
Capitalization Rate If Sold =
Current Net Operating Income ÷ Current Property Value
This allows us to determine the Cap Rate if we had sold the Property to someone else or the Cap Rate if they had to buy that Property again today for full retail value.
Additional Information About Scenario Charts
If you're interested in learning more about the Scenario Charts in the Real Estate Financial Planner™ check out these resources below.
More posts: Scenario Charts