@themultifamilyguy: If you only learn one formula in real estate investing, make it this one. Here’s how to value any apartment building in 60 seconds: 👇 To find what a commercial property is worth, you first have to calculate its Net Operating Income (NOI), then apply the market Cap Rate. Here is the step-by-step breakdown on a 10-unit building: • Step 1: Calculate Gross Potential Income 10 units × $1,000/mo rent × 12 months = $120,000/year • Step 2: Factor in Vacancy (10%) $120,000 × 0.90 = $108,000 in Effective Gross Income • Step 3: Subtract Operating Expenses (~35%) $108,000 − $40,000 (taxes, insurance, property management, maintenance, reserves) = $68,000–$70,000 Net Operating Income (NOI) • Step 4: Apply the Golden Formula (NOI ÷ Cap Rate = Value) $70,000 NOI ÷ 7% Market Cap Rate (0.07) = $1,000,000 Estimated Purchase Price Whether you are looking at 10 units, 100 units, or a 1,000-unit portfolio, commercial valuations always come down to this exact same formula. Save this video so you can use this math on your next deal analysis! 📲 What average Cap Rate are you seeing in your local market right now? Drop it in the comments below! 👇 . . . #realestateinvesting #multifamily #commercialrealestate #underwriting #caprate

themultifamilyguy

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Monday 21 September 2026 21:39:27 GMT