Market Conditions in Concord>Question Details

stevesoderbe…, Real Estate Pro in 95835

What is the current CAP rate for a new apartment complex of 137 units?

Asked by stevesoderberg, 95835 Fri Nov 23, 2012

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Carl Medford’s answer
To calculate the CAP rate for anything, you do the following:

1. Get the most recent sale price or, in the case of new construction, order an appraisal and get a fair market value.
2. Determine the net operating income for the property (current or projected gross rental income minus current or projected expenses paid by the owner (taxes, insurance, any financing costs, operating costs, etc.).
3. Divide the net operating income by the sale price (or appraised value, if new) to get the CAP rate.

NOI / Price = CAP Rate

In this case, we would need extensive information from you to actually determine the CAP rate. Since you’ve given us nothing, I’m hoping the above formula is what you actually need.
0 votes Thank Flag Link Sat Nov 24, 2012
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