I'm looking at a Multifamily that is what I call a classic investor grade property. This question has to do with the CAP rate.Current asking price is based on a CAP rate of 8.66. The average CAP for the city is about ...
I've read this article by Sergio Altomare - How to Calculate Cap Rate (& Where Many People Get It Wrong) several times and there is something that just doesn't make sense to me. These basic formulas do make sense:...
I understand the NOI/Cap rate formula for valuing how much a property is worth paying for, but how does this formula work for calculating the future or NEW value of a property after 5 years of rent increases?Since the...
Hi there! My name is Jenn and I'm new to the REI neighborhood and am just getting my start on the Cape with a STR. I'm going to start traveling full time and am hoping to get at least two more properties in the year o...
As a newbie whats my best way to determine the cap rate of a property
If your income stays the same, but the market spikes and value goes up- your cap rate goes down right? Kinda weird.
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I’ve recently come across a potential fix and flipper or fix and hold apartment complex. How do I go about calculating comps on a multiplex? How do I determine the ARV? According to cad they are multiple sizes and the...
I’ve been renovating a 16 unit apartment in Pittsburgh for the past 6 months and things are going well. I’m renovating individual units (kitchen/bath/flooring/some painting) and I’m able to increase rents $150-$300 pe...
Hello all,I am brand new to real estate investing and my knowledge is all from the books and podcasts I have read and listened to. One subject I can't seem to wrap my head around is how a property owner chooses thier ...