Then again, you may find a buyer who wants to live in one of those units, which means the tenant would have to vacate, which could pose a problem to the buyer. Leases go with the property. So the tenant has the right to stay. In that case, it doesn't matter how much the seller and the buyer negotiate, the tenant ultimately has the right to stay. It DOES matter, however, how the buyer and the tenant negotiate. If the tenant and buyer can come to an arrangement -- in writing, of course -- so that the tenant can find a suitable place to live prior to closing, possibly at the buyer's expense, then perhaps now you have a great deal for all involved: buyer, seller, AND tenant.
The cap rate will be Net Operating Income divided by the Purchase Price. So if you are getting $42,000 per year in rent ($3,500 average for 12 months), and your expenses are running about $23,000 (55%), you have a Net Operating Income (NOI) of $19,000. With the median price of 2-fams in Belmont being around $600,000, you're looking at a CAP Rate of 3%.
I'm happy to talk about this further with you, Bb! Email me at firstname.lastname@example.org.
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