Advantage Software LLC                               Real Estate Investment Software
                                         Capitalization Rate Graphic 
 
 
 
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    Sample Graphics
    Allocation of Cash Flow
     Capitalization Rate
     Cash Flow
     Cash on Cash Return
     Debt Coverage Ratio
     Equity
     Equity Dividend Rate
     Future Wealth
     Gross Rent Multiplier
     Internal Rate of Return
     Loan to Value Ratio
     MIRR Future Wealth
     Operating Expenses
     Sales Price /Loan Balance
     Sales Proceeds
 
 
    Capitalization Rate Graphic
 
                                                             (See Graph Below)
      
  The Capitalization Rate graph projects the Cap Rate into the future based on the investor's assumptions for income, expense and appreciation growth rates.  The Capitalization Rate graphic is derived from the Ratio Analysis report.  Note:  The Capitalization Rate graphic can be created in a line, step or bar format. To learn more about the cap rate, click on  Capitalization Rate  You will be taken to our Advanced Topics section.

If the cap rate drifts more than a point and a half, you might want to take a look at your growth rate assumptions for appreciation and income.  If you assume that the average appreciation growth rate is going to increase at a high rate, 10% for example, the property income will need to grow at a high rate to support the increased sales price.  Note: Graphs are scanned and will look a little fuzzy.

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