Property Manager · Palm Springs, CA · Member since 2016 · 9 posts · 0 votes
Basically, I am trying to find the future value of a property. For example, if I had a property for $1,000,000 and a cap rate of 10% = 100,000 and I increase the NOI to 120,000 then what would my calculations be? How would I find the future value?
Theoretically, if you increase the NOI of the property by 20%, the value will go up 20%. So if you increase your NOI from $100k to $120k, that's a 20% boost. $1,000,000 * 1.2 = $1,200,000.