Dan Harkey, at DanHarkey.com writes great articles about real estate on his website. You can read more articles by visiting his website. In this article, he discusses “The Capitalization Approach to Income Property Valuation as Interest Rates Rise.” Definition of capitalization of earnings: The capitalization approach estimates the fair value of an asset such as income-producing real estate by calculating the net present value (NPV) of expected future net profits or net cash f...