Networking, Valuation, and Market TrendsBuilding a robust network is essential for thriving in the competitive land investment market, particularly in high-demand areas like Paradise Valley and Scottsdale.

This is of course market driven.

Purchase price: $485,000 Cash invested: $100,000 Originally on the market for $700,000.

Essentially, the cap rate is the proportion of Net Operating Income (NOI) to the property's value or selling price:Cap Rate = Net Operating Income (NOI)/Property ValueThis ratio offers a direct method to evaluate the yield a property generates in relation to its cost.For advanced real estate investors, integrating additional factors might prove beneficial:Vacancy rate: The duration the property remains vacant.Operating expenses percentage: Includes insurance, utilities, and maintenance costs (excludes mortgage payments, depreciation, or income taxes).The adjusted formula for net income, incorporating these considerations, is:Net Income=(100 − Operating Expenses %) ×(100 − Vacancy Rate %) × Gross Income

How ‘hot’ is the market?

Looking ahead to my next project, do you have any advice or resources for finding off market deals? 

It’s highly passive and there not much to do other than network and marketing.

I'm eager to learn from your experiences—what strategies or processes do you use to determine expense figures in your market?

Make sure that the market there makes sense for your goals to invest.

If you have any feedback on additional things you would like to see please reach out directly!