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17 September 2008 | 12 replies
By these figures, the is NOI = 87,978, giving a cap rate of 11.5% buying at the listed price of $760,000.Now, I'm thinking these expenses are way too low, so now I'll plug in the 50% rule.Annual Rent Income = $141,720 Annual Expenses = $70,860NOI = $70,860At the listed purchase price of $760,000, this would be a cap rate of 9.3%.$70,860/12 months = $5905.00 NOI per month$760,000 @ 9% for 30 yrs = $6,115.13 monthly mortage paymentFor a NEGATIVE cash flow of $210.13 per month.So, shooting for $100 cashflow per unit, I would need to purchase at around $435,000.I pulled the 9% interest rate + 30 year term out of the air, so any corrections on the reality of such a mortgage are appreciated.Do my calculations look right?
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23 September 2008 | 1 reply
Does anyone have any lease clauses that prohibit the use of plug in electric heaters and also I'm looking for a clause that puts a cap on the electric bill.I have a unit that is on the same meter as the common areas and furnaces so I have to pay the electric on it but the tenants have been abusing their "free" electric so I want to figure out how to put a cap to this.
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8 November 2008 | 79 replies
However, it does look like a cap on executive compensation for firms participating in the plan has gained approval by Hank Paulson.
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28 October 2008 | 5 replies
because basically to me there is no set true value even when both you and seller agree on the income the property produces.Example....a property generating 100K and a asking price of 1.4M equals a cap rate of 7.
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28 October 2008 | 12 replies
If you want a cap rate of 10%, then the most you can pay is $181, 560.
3 November 2008 | 4 replies
Both candidates favor a cap and trade system which will result in an increase in gasoline of about $2 per gallon.Obama has said that his plan will "bankrupt" our coal industry!
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14 October 2006 | 9 replies
All of them cash flow and have a cap rate of 11 or better.
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19 December 2006 | 1 reply
-has a positive cash flow-is rented at below market rent -has a cap rate greater than 10%-relatively good shape -Occupancy is above 90%-Price/unit is below $30,000...would you buy it if you had the funds/financing to do so?
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15 January 2007 | 2 replies
Figure wiggle room on their asking price.Whether a cap rate is good or not has a lot to do with your personal investment goals.
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5 February 2007 | 12 replies
cap gains on this sort of stuff is not so cut and dry and you might not get hit so hard with it if you or your accountant knows what to do with the money before the sale and after the sale.what you think might be a cap gain on 120k, might turn out to be 80k etc...talk to your CPA.