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Why Do Investors Buy Low Cap Investment Properties?
When you’re investing in real estate, you hear a lot of numbers thrown around. Cash flow, net income, return on investment, and cap rate. It’s hard to make heads or tails out of all the numbers, but it should be the cap rate if there’s one number you focus on. Many investors buy low cap investment properties meaning properties with a low capitalization rate. It may sound ‘backward’ or seem strange, but there are many reasons investors choose this path. What Is The Cap Rate? Cap rate or capitaliz