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Updated about 6 years ago on . Most recent reply
Multi Family Apartment Investing!
Hello im very interested in multi family investing and have been doing research on the area i want to focus on in Florida. Just curious if anyone has a good formula they use to run the numbers on an apartment building! Thank you
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#2 Land & New Construction Contributor
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- Charlottesville, VA
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#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
@Josh Richter it's all about what you're looking for. Apartments are valued based on CAP rates which are determined by the NOI. You start with NOI and work backwards. What kind of CoC and IRR are you looking for? It's not complicated but there are things you need to know and verify when vetting properties. There are plenty of models out there you can download for free. Study the offering memorandums to understand the numbers and values but do not rely on them and do not rely on future pro-forma values either.