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Updated almost 2 years ago,

Account Closed's profile image
Account Closed's profile image
Account Closed
  • Rental Property Investor
  • from Seattle Area
  • Member since Aug 26, 2022
Connect
Account Closed's profile image
Account Closed's profile image
Account Closed
  • Rental Property Investor
  • from Seattle Area
  • Member since Aug 26, 2022
Connect
Account Closed
  • Rental Property Investor
  • Seattle Area
2
Votes |
4
Posts
Multi-Family and Apartment Investing

How are cap rates are calculated and by whom?

Account Closed
  • Rental Property Investor
  • Seattle Area
Posted

When valuing a commercial multifamily building based on the income approach, the cap rate relates NOI to value. But my question is how does cap rate come to be and who actually calculates this? How subjective is it?

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