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Updated over 3 years ago on . Most recent reply

Billy Daniel's profile image
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Billy Daniel
  • Rental Property Investor
  • from Russellville, AR
  • Member since Jul 5, 2014
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Billy Daniel's profile image
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Billy Daniel
  • Rental Property Investor
  • from Russellville, AR
  • Member since Jul 5, 2014
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Billy Daniel
  • Rental Property Investor
  • Russellville, AR
508
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Multi-Family and Apartment Investing

Apartment Cap Rate Calculation

Billy Daniel
  • Rental Property Investor
  • Russellville, AR
Posted

Hey BP! I'm looking at several multifamily properties and I'm unclear on performing a cap rate calculation. It seems there is some variance in what is considered an operating expense. Which of these would you classify as op expense and thus affect your NOI?

Insurance, Principle payments, interest, utilities, wages, maintenance, prop mgmt, vacancy, taxes

Am I forgetting anything?  Thanks in advance!

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    Bryan Hartlen
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    • from Phoenix, AZ
    • Member since Oct 21, 2018
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    Bryan Hartlen
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    Bryan Hartlen
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    Bryan Hartlen
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    Principal & interest are not part of the expenses. Debt financing is applied after NOI is calculated.

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