Price Per Door
Cap Rate & Price Per Door
Turn an asking price and NOI into price per door and a going-in cap rate, the two numbers every Houston broker quotes first.
Cap rate is NOI divided by price. It ignores debt, so compare it to your borrowing cost: when the cap rate sits below the rate on your loan, leverage lowers your cash yield instead of raising it.
For education only. Not investment, tax or legal advice.