An investor bought a Commercial Property in Los Angeles for $1 million. In the first year, he got $80,000/ year in Rental Income after all the expenses. What is the Capitalization Rate for this property? In the second year, few of the tenants left the building and hence the Rental income dropped to $50,000. What would be the Capitalization Rate for second year?

1. 80%, 50%

2. 8%, 5%

3. 5%, 8%

4. 50%, 80%