In one sentence
The capitalization rate at acquisition, based on in-place or first-year net operating income relative to the purchase price.
The longer version
The going-in cap rate reflects a property's yield at the moment of purchase, using current income. It is the starting point against which value-add plans and exit assumptions are measured.
A low going-in cap rate signals a richly priced acquisition, which lenders weigh against the business plan and the exit assumptions.
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