Glossary - Don Wixom, Nampa, Caldwell, Boise, Eagle, Meridian | Complete Idaho MLS | Idaho Real Estate Agent

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Capitalization rate	Commonly called the cap rate, the capitalization rate can be used as a division factor to decide the capital value. The net income from an investment divided by the cap rate will equal the capital value, or value. The cap rate is a combination of a return or recapture of the investment and a return on the investment.

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