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Cap Rate vs. Interest Rate — Easy Breakdown Both show the price of money: • Cap Rate = what you earn 💰 • Interest Rate = what you pay 💸 They move together: 📈 When rates go up, property values go down 📉 When rates go down, property values go up RV Parks = move fast when rates change 🛻 Short-Term Rentals = react slower 🏠 👉 The gap between them = your profit zone Cap Rate higher than Interest Rate = good deal Cap Rate lower than Interest Rate = risky deal #RealEstateInvesting #RVParks #Short
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