Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

4
Posts
0
Votes
John Stephenson
  • Rental Property Investor
  • Aberdeen, NC
0
Votes |
4
Posts

Brandon’s formula error???

John Stephenson
  • Rental Property Investor
  • Aberdeen, NC
Posted

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??

  • John Stephenson
  • Loading replies...