All Forum Posts by: John Pitkin

My understanding of cap rate calculation is NOI divided by the property cost or value. Recognizing that cost and value are not necessarily the same, I'm confused about which one to use in my calculations. When would it make sense use cost to calculate the cap rate? When should you use the value instead of the cost?

I am familiar with single family rentals, and in my area the typical rate for property management is about 10% of rent collected. What is the ballpark percentage for multifamily properties? I read another post stating that typical costs go down to 5% when the number of units is at 50 or higher.

Thanks for the advice. I was looking for a standard method, but I guess everyone has their own way of doing this...

Is anyone aware of a standard rule for estimating how much reserves to include in repair costs? It seems to me that the cost of replacing major items such as a roof or furnace should be included over the estimated remaining life of that item. Any thoughts?