All Forum Posts by: Account Closed

1.  Um NO,  I'm describing MARKET VALUE.  Do you need me to provide a definition? 

2.  The Appraisal Industry DEPENDS on sales comps.  The Appraisal Industry interprets those sales for people that have no understanding of MARKET values.

Please support this incorrect statement.

Cap rate = NOI/market value,

Is the market value $800,000, $1,000,000, or $1,250,000?  You cant JUST make up numbers.

Why? 

Geez David, rent to value ratio is ONLY used to get novice investors like you to invest in crap areas.  The higher the number ONLY means the market rent is WORTH LESS!

1.  Better to have a .8% RTP ratio AND have appreciation so that every $100,000 in appreciation gets you an increase in rents of $800!!!  Having a 2% RTP ratio but no rent growth or appreciation means any cash faux is eaten up by inflation and capEx.

2.  Cash flow is for poor investors or investors that are poor. 

3.  Learn what your long term appreciation rate is.  Ignoring it is foolish.

With only $35,000?  Probably buy a nicer car.

Nope, Bob's got it exactly right. Cap rate measures market value of NOI. One sale does not make a market but thanks Grandma for the deal anyway.

Nope, but it doesn't really matter. A 40% cap rate is impossible in the real world. It would mean a $10,000 NOI is selling for only $25.000.

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