Valuing a 12 unit apartment

[Kathie Riedel]

I have foreclosed on a property with 3 buildings each with 4 studio units. I have rehabbed and have all units rented. I intend to sell after a few months. How do I determine the value of the property?

[Barry Ruby]

@Kathie Riedel value is determined by capitalizing the net operating income. This is done by dividing the NOI by an assumed Cap Rate.

For example: $100,000 NOI / 5.0 % (cap rate) = $2,000,000 value.