Investment Properties - What do you look for?
Real Estate can be a great investment as part of a balanced portfolio. There are many brokers that sell investment properties, but we do more! We work hard to find you a good investment. Whether that is a single unit or a duplex to apartment complexes. We work out cap rates, vacancy rate, and profitability forcasts based on known demographic profiles so you can go into the purchase with the big picture. If we don't think a property has good earning potential then we will tell you that. We want you to be happy with your purchase, and make money on your investment. Real estate can be a great investment if bought and managed correctly. We would love to talk to you about this.
Capitalization rate or "Cap Rate" is the rate of return on a real estate investment property based on the income that the property is expected to generate. The capitalization rate is used to estimate the investor's potential return on his or her investment.
The capitalization rate of an investment may be calculated by dividing the investment’s net operating income (NOI) by the current market value of the property, where NOI is the annual return on the property minus all operating costs. The formula for calculating the capitalization rate can be expressed in the following way:
Capitalization Rate = Net Operating Income / Current Market Value
Read more: Capitalization Rate Definition
2018 Seattle Average Cap Rates: 4 - 4.5%
2018 Tacoma Average Cap Rates: 4.5 - 5.25%
2018 Olympia Average Cap Rates: 5 - 6.8%
To see current residential properties in your area, click below.
The Cap Rate South Sound Commercial Achieved for one of their recent Investment Clients....
Average Cap Rates for our clients is 6.5-8%