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Updated almost 9 years ago on . Most recent reply

Tzvi Balsam's profile image
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Tzvi Balsam
  • Investor
  • from Brooklyn, New York
  • Member since May 30, 2016
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Tzvi Balsam's profile image
Tzvi Balsam's profile image
Tzvi Balsam
  • Investor
  • from Brooklyn, New York
  • Member since May 30, 2016
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Tzvi Balsam
  • Investor
  • Brooklyn, NY
45
Votes |
224
Posts
General Real Estate Investing

X Times the rent. Is there anything behind it.

Tzvi Balsam
  • Investor
  • Brooklyn, NY
Posted

In Brooklyn I hear people buying buildings based on how many times the rent it is. For example if purchase price is 8 times the rent its considered a great deal, If its 10 times the rent not so great.

I wanted to understand this more, if someone can please explain this concept.

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Kevin Harrison's profile image
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Kevin Harrison
  • Investor
  • from Woodbridge, Virginia
  • Member since Jun 2, 2015
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Kevin Harrison's profile image
Kevin Harrison's profile image
Kevin Harrison
  • Investor
  • from Woodbridge, Virginia
  • Member since Jun 2, 2015
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Kevin Harrison
  • Investor
  • Woodbridge, VA
197
Votes |
476
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Kevin Harrison
  • Investor
  • Woodbridge, VA
Replied

Go up the search bar and search CAP Rate. I belive this is what they are talking about.

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