How to determine valuation of apartment building in Milwaukee

[Doug Prahst]

Hi,

So, is there a formula to be used taking only rental income into consideration to determine the value of a property? I'm interested in a 12 unit complex that generates $93,600 annual gross income; taxes are $15,800.

Thanks, Doug

[Kevin Fox]

Originally posted by @Account Closed:

CapEx are not an operating expense and are not a part of this calculation.

 You are absolutely correct. My apologies.

I guess that is what I get for copying and pasting this from my cash flow equation explanation doc that I send to clients. 

Forgoing the deduction of capital expenditures, the above equation should hold true.