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


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Joseph Del Sesto, GRI, SRS’s answer
Joseph Del S…, Agent, Cranston, RI
Sun Jul 29, 2012
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
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Hi Joe, thanks for the advice, I appreciate it. Sarah
Flag Mon Aug 6, 2012
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