Cap Rate?

How do you determine the cap rate and for info sake what is it?

See this thread in the Commercial forum:

http://www.reiclub.com/forums/index.php/topic,30213.0.html

The term “cap rate” can mean a few thiings—in commercial lending, it means the capitalization rate and in residential it means either the annual cap rate or lifetime cap rate of a ARM…

Regards,

Scott Miller