Gross vs. Net Cap Rate
I have received an interview test from a small RE acquisition firm. The company primarily deals with SFR (single family rentals) and small apartment buildings. For the test, they asked me to evaluate 3 SFRs which includes determining the rental value, price we should pay, and a gross and net cap rate. I am wondering if anyone is familiar with gross and net cap rate. I have only heard of cap rate (which I assume would be gross cap rate?). Any and all help is appreciated. Thank you!