An Opportunity Zone A qualified opportunity zone is an economic development tool designed to increase economic development and create new jobs in economically-distressed communities. It provides tax benefits to investors by allowing them to temporarily defer tax on their gains until the earlier of the investment being sold or exchanged or until December 31, 2026. How much gains tax can I defer? If the opportunity zone investment is held for longer than 5 years, there is a 10

Doing the Math Simply put, the cap rate equals the net operating income (NOI) divided by the value (sales price). The NOI is calculated by taking the yearly income of the subject property and subtracting any operating expenses, other than your debt (i.e. property management fees, maintenance, taxes, insurance). Once you have this number, you will divide it by the purchase price to get your cap rate. Now you have the rate. But… what does it mean? Analyzing and using the cap ra