Game · Cap rate practice
Grade the Deal: guess the cap rate
Ten made-up rental deals. Read the price, rent and expenses, slide to your best guess of the cap rate, and see how close you got. Finish for a letter grade and a card to share.
Round 1 of 10
Score so far: 0
- Price
- Total rent
- Vacancy and credit loss
- Operating expenses
Your deal grade
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Round by round
How scoring works
Cap rate is net operating income (NOI) divided by price. NOI is yearly rent after vacancy, minus operating expenses (not the mortgage). Each round is worth up to 100 points: an exact guess scores 100, and the score falls in a straight line to 0 at three percentage points off. Ten rounds make 1,000 points.
Grades: A is 850 or more, B 700, C 550, D 400, and F below that. The deals are made up for practice and are not real listings.
Want to run your own numbers? Try the cap rate calculator.