All Forum Posts by: Mike Keever
Mike Keever has started 1 posts and replied 3 times.
Post: Determining Property Value
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@Immanuel Sibero
Agree! Thanks for sharing Immanuel
Post: Determining Property Value
- Posts 3
- Votes 0
@Immanuel Sibero
Thank you for the reply. I just started reviewing the material today and have not consulted with anyone regarding the Cap Rate, however I do know the location would most likely fall in that range...I came up with the higher 2% cap rate as well, that’s why I wanted to make sure I wasn’t calculating incorrectly...I’m guessing the other $10m is an additional premium for location in Southern CA...lol
Post: Determining Property Value
- Posts 3
- Votes 0
Hi All, I have a question regarding determining potential Property value based on CAP Rate. I'm analyzing a property in Southern California that is a 60 unit apartment complex. It's currently 100% occupied and shows about $1.3m in annual income with an NOI of about $621k. Based off my research I was thinking NOI ($621k) divided by CAP Rate equals potential Property Value...if it's a 5 Cap location that equates to about $12m...the seller is asking $22m which to me seems the broker is dividing the Gross income by Cap Rate..any input to clarify would be great. Thank you in advance for everyone's input!
Best,
Mike
Orange County, CA.