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Updated over 4 years ago on . Most recent reply

Brandon Benitz's profile image
Brandon Benitz's profile image
Brandon Benitz
  • Realtor
  • from Kearney, NE
  • Member since Apr 29, 2020
  • Posts 2
  • Votes 0
  • Experience 4 Yrs
  • Investments 1
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Brandon Benitz's profile image
Brandon Benitz's profile image
Brandon Benitz
  • Realtor
  • from Kearney, NE
  • Member since Apr 29, 2020
  • Posts 2
  • Votes 0
  • Experience 4 Yrs
  • Investments 1
Connect
Brandon Benitz
  • Realtor
  • Kearney, NE
0
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Buying & Selling Real Estate

How To Figure Property Value

Brandon Benitz
  • Realtor
  • Kearney, NE
Posted

Ken McElroy's, and others, formula for figuring property value is Net Operating Income / Capitalization Rate = Property Value.  But since Cap Rate is based off of value, I keep getting a circular formula where the value according to this formula always matches the purchase price.  

How do I come up with an independent figure for value that is NOT based on the original purchase price?

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