Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago,

User Stats

8
Posts
1
Votes
Aran Shinaar
  • Tel Aviv, Israel
1
Votes |
8
Posts

Calculating Cap Rate - first investment

Aran Shinaar
  • Tel Aviv, Israel
Posted

Hello BPs and thanks for those who answer my question.

I just purchased a single-family property in GA and wondered what is the right way to calculate its cap rate at the end of 2018. As far as I know the basic calculation is the purchase price divided by the NOI. I bought the house for 53k but then I had to pay for roof replacement (4.6k) and some repairs (6k - paint, cleaning, new appliances, insurance first two months payment and more). Should the roof replacement and other repairs mentioned be deducted from the NOI? I'm not sure if roof replacement (which is CapEx as far as I know) is considered an operating expense. Furthermore, there were some expenses such as house inspection that I wonder how do I add them to the equation.

Thanks again,

Aran

Loading replies...