stevesoderbe…,  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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Curt Bulloch, Other Pro, Concord, CA
Thu Feb 12, 2015
In addition to the knowing the CAP rate, know what the insurance cost will be, this will help you with your break even point on cash flow. Having the correction insurance coverage to protect your investment is important, have at least $ 1 Million in liability coverage and coverage for loss of income and rents, plus wrongful eviction. We work with many carriers to find the best coverage for the right property.
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The Medford…, Agent, Fremont, CA
Sat Nov 24, 2012
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.
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