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Multi-Family and Apartment Investing

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Vlad Denisov
  • Glendale, CA
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Delta between future income and expenses

Vlad Denisov
  • Glendale, CA
Posted Apr 27 2019, 17:05

Let's say we underwrite a deal and we think 3% growth  in Gross Operating Income and 2% growth in opEx are reasonable. 

Because of this delta, NOI increases every year and Cap Rate as a result. But NOI can't grow infinitely over time, right? What are the reasons this process stop and when should we expect it to stop?

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