Capitalization and Rent are both factors that determine whether a real estate purchase is a wise investment.
Capitalization rate is a percentage that represents the Return on investment based on the Price increase of the asset that you acquired. The company’s strategy regarding Capitalization is anchored on the selection of assets that are clearly undervalued in regards to comparables, building cost and historic prices trends.
Rent is represented by the monthly cash flow that the asset generates measured in currency. As far as the Cash flow generation, thru 1791 Vacation Experience the company’s strategy is focussed in the short term rental of the units under management.
This approach provides the investor/owner a very simple way to follow the cash generation thru 3 simple steps: