Net Operating Income (NOI), dividing it by the sales price, is the cap rate.
Say the property has an NOI of $250000, and the price is $2500000
$250,000/ $2,500,000 = 10% cap rate
Gross Rent Multipliers
Monthly rents $9,000 multiplied 12 = $108,000
$108,000/$2,500,000 = 23 gross rent multiplier
With NOI and GRM is is more.
Gail Mercedes Cole