Hi - can somebody please explain why the mortgage expense is removed from the NOI when calculating the Cap rate? A mortgage pmt is a monthly expense, so if you account for it when you determine your NOI, why is it re...
Hello everyone, I would love your opinion on what you would do if you were in my situation. So the quick breakdown is I live in the SF Bay Area, I have a lead on a fourplex, where the owner want 1.5mm (I'm set at 1.45...
I'm new here and I live in Harwich, MA. I've been looking for a local REIA convenient to the Cape Cod area, but have not been able to find anything. Nor have I found any recent relevant posts. Is there anyone from ...
Hi, I am looking to invest in multi-family homes in the MSP area. What is the CAP rate people are seeing ?thanks,Walter
Does a commercial build-out of offices in an office/retail space have any bearing on cap rate? For example, suppose I had an appraisal conducted with a proposed floor plan of a building I'm renovating after a fire wit...
Hi All,
I understand that:
CAP rate = NOI/purchase price
Value = NOI/CAP rate
So, if I want to establish the VALUE of a property, how do I get the CAP rate?
I took the following notes in a...
Hey guys!
Do you take into account vacancy rate when calculating operating expenses? My cap rates are always lower since I take into account ALL my operating expenses:
-property insurance
-tax
...
Cap rate, short for capitalization rate, is a metric used to evaluate the performance of an investment property; and is a widely accepted metric in the real estate industry used to compare the potential returns of dif...
I am looking at purchasing an initial property. I would like to now what the cap rate is for the above area ( New Brunswick, NJ ) so that I can run the numbers for this property and see if it works and is priced corr...
The “cap rate” is probably the most widely used metric in commercial real estate. It’s a metric that I refer to almost every day when describing or evaluating an investment opportunity. In short, a cap rate is the u...