Home Buying in Providence>Question Details

Sarah.hang, Home Buyer in Providence, RI

I want to buy an apartment building in Providence Elmwood. The property has studios and one-bedroom units with cap rate is >15%. Is it worth?

Asked by Sarah.hang, Providence, RI Sat Jul 28, 2012

buying?

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Sarah, did you calculate the cap rate, or did someone give it to you? 15% is a good cap rate, however, I like to do an overall pro-forma for any investment property that my buyer is looking at. It includes REAL documented income, and REAL expenses that can be proven by the seller. Once we have REAL information, then we can determine a real cash on cash return, along with a cap rate. I like to see a minimum of 20% cash on cash return, and a minimum 12% cap rate. Joe Del Sesto. http://www.joedelsesto.com
0 votes Thank Flag Link Sun Jul 29, 2012
Hi Joe, thanks for the advice, I appreciate it. Sarah
Flag Mon Aug 6, 2012
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