Help understanding (maybe) CAP/NOI/PRICE

[James Saturley]

Hello BP. I'm not sure if I'm having a difficult time understanding the relationship between Cap rates, NOI, and Price. Maybe I'm not, but the prices that multi-family units are selling for in Tampa, don't make sense.

Duplex sold for $435K, NOI was $24,639, and the cap rate here (I'm told) is 8% (GROSS was $42,750)

Fourplex sold for $588K, NOI was $32,315, CAP is 8% (GROSS was $50,103)

So, if the price = NOI/CAP, then the first should have sold for $307K, The second $403K, am I right?

The prices they sold for don't add up even in the BP calculator, so why are people buying them?  Am I missing something basic?

Thanks,

Jim