A cap rate helps determine if a real estate investment is worth pursuing. The cap rate formula involves dividing a property's net operating income (NOI) by its purchase or appraised value.

We break down the three key steps for success in real estate investing ... You’ll then calculate your net operating income (NOI) and ensure you have a 7% return on investment.

Ridvan Celik/Getty Images When investing in real estate, knowing how to value property ... including calculating capitalization rates and NOI. For a well-rounded valuation, Meijer recommends ...