Finding future value
1 Reply
Nicholas Schwarz
Property Manager from Palm Springs, CA
posted about 2 years ago
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?
Geordy Rostad
Real Estate Broker from Kirkland, WA
replied about 2 years ago
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.
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