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BlogsReal Estate CalculationsHow to Calculate Purchase Price Based on Nearby Area Cap Rate

Posted over 2 years ago

How to Calculate Purchase Price Based on Nearby Area Cap Rate

Contain 800x800

Calculate property value based on Nearby Area Cap Rate and property Yearly NOI. Used for commercial properties, Multi-Family 5-units and above.



   Net Operating Income
÷ Nearby Cap Rate
----------------------
= Property Value

  $112,330.20
÷ 0.06
------------
= $1,872,170

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