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Updated about 6 years ago,
How do I calculate my property’s value after raising the rent?
I bought a 2 unit property about a year ago. Now I’ve successfully raised the rent by about 20%. Assuming that I paid a fair market price at the time, how should I calculate the propertie’s value now that it generates a lot more income?
If cap rate = net income / property value
Then property value = net income/ cap rate
Can I assume the cap rate is the same as before and get the new value this way?
Thanks