Subtract all expenses, but not including mortgage payments. Net income before debt-service, divided by the “cap rate:” It really is a simple formula. If the common capitalization rate is .10, for example (ask a realestate agent), divide the income of $52,000 by .10, and you get [...] The tough part getting accurate income figures. If you were looking at a 24-unit building, it would be difficult to find similar ones nearby that have recently sold. Used wisely, though, realestate appraisal using capitalization rates is one of the most accurate methods.
Walk In Bath Tubs

Information is deemed reliable but not guaranteed.

Write a comment

You need tologin.