Value Formulas for Real Estate Investors
Wednesday Apr 18th, 2018
ShareReal estate investors use a variety of calculations that can help them make decisions on potential investments. The most common calculations include Capitalization Rate (Cap Rate), Monthly Rental Factor, Gross Income Multiplier and Cash-on-Cash Returns. Cap Rate CR = Net Operating Income/Property Value Probably the most widely known. It can be used to find the market value of a property if the market cap rate is known and the property has a solid verifiable income and expense... [read more]