All Forum Posts by: Jeffrey Gonano

Thanks for all the help, I understand pro forma cap rates much better now.

I'm having a hard time understanding the Pro Forma Cap Rate in the Rental Property Calculator.  I have a property that I'm looking at and the pro forma cap rate comes out to about 8.26% with my after repair value at $145,000.00.  I was curious what would happen to my pro forma cap rate if i changed the after repair value to $160,000.00 and the pro forma cap rate did the opposite of what i thought it would and went down to 7.48%.  I always thought a higher cap rate was better.  Does this not apply to the pro forma cap rate?

Thanks in advance 

I recently purchased my first rental property. Its a 4 unit building with and old fire escape porch in the back. At some point the landings and stairs rusted out and had been replaced with wood. I decided since the stairs are in bad shape to redo them and when i was researching the code for new stairs I found out that with the landings where they currently are I can't meet code (ie 10" steps and 7 3/4" risers). I'm curious what to do in this situation. My options are to rebuild the stairs and replace them in the locations they currently are or build stairs to code and cut into the landings which would be considerably more work.

Thank you