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Updated about 3 years ago,
Brandon’s formula error???
I'm reading your book 'The Multifamily Millionaire' and have loved it so far.
However I feel like there's a pretty big typo on page 140. Brandon is talking about the formulas...
he says NOI / Property Value = Cap Rate (which is absolutely correct)… and then he says it can be rewritten as….
Property Value = NOI / Cap Rate (which also appears to be correct) But then he says you can also write it as
NOI = Cape Rate / Property value …
which doesn’t make sense to me.. shouldn’t it be..
NOI = Cap Rate x Property Value instead??
I'm obviously an amateur (especially compared to Brandon) so I'm probably wrong... but simple plug and play with numbers suggests it's a typo.
Any clarification??