Oh, crap crap cap!

Cap rate methodAssuming a median cap rate of 10% for the area, offer price = $98k (NOI of $9737 divided by 10%)So, based on the above, I see a wide range between $98k to $159k none of which the lender may accept by the way.

Hello @Wendy BlackMainly we will be looking for Multi Units.  4-8 unit buildings depending on the numbers.We really need to know the different areas in Phoenix that would be best to acquire properties.We are looking for properties that would have 1%-2% Rules, Cap Rates around 6%.  

Based on average rent per unit or sf, number of units, market vacancy, plus possible amenities income, less OE of approximately 40% (ask appraiser for OE ratio or property manager) less replacement reserve ($250 per unit), gives you your appraisal NOI;  Identify sales comps and cap rates (call a local appraiser).  

Those I have to cap / disconnect.The issue with removing those ceiling is it will be a lot of work. 

Look up the 50% rule, 2% rule, NOI, CoCROI, and cap rate.

@Jeb Brilliant how are the cap rates and tenant base in Indianapolis?

What led you to partnering (or not) and how did you structure the partnership (split cash flow, cap costs, financing costs, etc 50/50 or some other structure?). 

What is the NOI and cap rate? 

On an investment in a condo or co-op, what numbers are you using to calculate Cap-Ex and Maintenance in situations where HOA fees cover external items like the roof, building exterior, foundation, landscaping, etc.?