Finance
An Oklahoma investor evaluating a potential rental property should calculate which metric to compare the initial income yield to the purchase price?
ALTV ratio
BOverall capitalization rate (cap rate)✓ Correct
CDebt-to-income ratio
DGross rent multiplier only
Explanation
The overall capitalization rate (NOI / Purchase Price) is the primary metric for comparing the initial income yield of a property to its purchase price. It allows comparison across different properties and markets.
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