Updated about 4 years ago on . Most recent reply
Apartment Cap Rate Calculation
Hey BP! I'm looking at several multifamily properties and I'm unclear on performing a cap rate calculation. It seems there is some variance in what is considered an operating expense. Which of these would you classify as op expense and thus affect your NOI?
Insurance, Principle payments, interest, utilities, wages, maintenance, prop mgmt, vacancy, taxes
Am I forgetting anything? Thanks in advance!
Most Popular Reply
Principal & interest are not part of the expenses. Debt financing is applied after NOI is calculated.