You would use a CAP Rate dependent on the Class of the property.

I cannot calculate a cap rate and there aren't any other comparable properties in the area that have sold in the past 24 months.

If you wait until day 366, it will turn into a cap gain instead of ordinary income.  

In my local market, a multi-families in our A or B parts of town with a Cap rate of 5.5% will usually fly off the market in a few days, often with multiple offers.

Keep in mind commercial properties are evaluated based off of their NOI and a CAP rate.

You also have to apply a cap-ex holdback and vacancy to, again, do a like-for-like analysis.  

im in mass also...im in the process of jumping back in...ive bot & sold a couple of 3's and 4's in mass over the last 5 yrs...lucky enough to sell 2 four units about 2 years ago just in time...anyways, the 50% rule they describe here seems too high for me also...i dont believe you will find any of those type of properties in mass even in dorchester, lawerence or fitchburg...maybe fitchburg or springfieldim under agreement on a 3 decker w/ a cap rate of about 12%...pretty good in my eyes...my cash flow estimates are about $1500 per month...now thats w/ me doing all the work, which i will do...that is with no maintance nor property management...i would not buy a 3 family unless i could cash at least $1000 per month...it is a numbers game and common sense...i look for newer roof, newer heating systems, vinyl siding, new windows, parking (thats huge) especially in the tight city areas, and deleaded certs, and decent clean streets in otherwise bad cities (they are still out there)...i will only do section 8, but you must screen, screen and screen them...i find you get more $$$ w. section 8 tenants, and they will stay forever if you take care of what your supposed to...

. $2 dollars for a front picture and address of any (non duplicated from same company) property that seems abandon (closed, uncut grass, overflow mail box, etc.) include a cap per month.ii. explain to the business owner that if he directs his employees to do this task it could mean additional cash flow for there business.iii. once you have a list of business owners that get on the program, have the VA's follow up with them on a monthly basis.c. once data starts coming in have the VA's compare the obtained list with a list of houses listed in MLS to ID houses not listed in MLSd.

I'm closing on the 30th on another SFH and was reading over some documents today and noticed that my lender (30yr 4%) says the maximum contribution at closing from the seller is 2% of PP or in this case $2700. I'm pre...

Now the monthly NOI is $1000, a cap rate of 12% annually with the annual cash on cash return jumping up to 37%.