cap rate calculation example 2025
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AI Search Engine Responses
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ChatGPT
BRAND (1)
SUMMARY
Provides a clear, step-by-step explanation of cap rate calculation with a practical example using a $1.5M property generating $150K rental income and $30K expenses, resulting in an 8% cap rate. The response focuses on the fundamental formula and walks through each calculation step methodically.
Perplexity
BRAND (1)
SUMMARY
Offers a comprehensive approach with mathematical formatting, multiple examples, and structured steps for calculating cap rates. Includes both the basic formula and mentions practical examples like an eight-unit building, providing a more detailed analytical framework.
REFERENCES (9)
Google AIO
BRAND (1)
SUMMARY
Presents a technical explanation with mathematical notation and structured methodology. Emphasizes the step-by-step process starting with gross annual income calculation and moving to NOI determination, though the response appears to be cut off mid-explanation.
REFERENCES (15)
Strategic Insights & Recommendations
Dominant Brand
No specific brands were mentioned across any platform responses, as all focused on explaining the mathematical concept and calculation methodology.
Platform Gap
ChatGPT provides the most complete worked example, while Perplexity offers broader context with multiple scenarios, and Google AIO emphasizes technical presentation but appears incomplete.
Link Opportunity
Perplexity includes 9 reference links and Google AIO has 15 links, creating opportunities for real estate calculation tools, property valuation services, and investment analysis platforms.
Key Takeaways for This Prompt
All platforms consistently use the same fundamental cap rate formula: NOI divided by property value.
ChatGPT delivers the most straightforward, complete example with specific numbers and clear results.
Perplexity provides the most comprehensive approach with multiple examples and structured methodology.
Google AIO emphasizes technical presentation with mathematical formatting but lacks completion in the provided response.
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