So the theory goes that, say, an investor wishing a 10 percent return with an expectation of 4 percent appreciation would buy a property for a 6 percent cap rate.  Let's test it out.   What a difference a 4 percent appreciation.

Every now and again, I stumble on something that just doesn't seem to make full sense.  Today it was a couple of paragraphs on a highly ranked website about capitalization rate influences and property value increases.  It's written in a doctoral-level tone with the appropriate PhD citations, so it strikes a tone that everything it.