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Posted over 3 years ago

How to Calculate Purchase Price Based on Nearby Area Cap Rate

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Calculate property value based on Nearby Area Cap Rate and property Yearly NOI. Used for commercial properties, Multi-Family 5-units and above.



   Net Operating Income
÷ Nearby Cap Rate
----------------------
= Property Value

  $112,330.20
÷ 0.06
------------
= $1,872,170



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