@themultifamilyguy: Ever wondered how real estate investors figure out what to offer on an unpriced property? 🏢💡 Here is the quick math break-down using a 33-unit apartment complex in Kansas City: 1️⃣ Calculate Gross Potential Income: Take the average rent ($1,100) × units (33) × 12 months = $435,000. 2️⃣ Adjust for Occupancy: Multiply by 95% occupancy to find the effective gross income ($413,000). 3️⃣ Subtract Operating Expenses: Factor in a ~40% expense ratio ($165,000) for taxes, insurance, management, and maintenance. 4️⃣ Find the Net Operating Income (NOI): Leave yourself with an NOI of around $250,000. 5️⃣ Determine Purchase Price: Divide the NOI by your target cap rate (e.g., 7% cap rate) to get a valuation of around $3.5M–$3.6M! Now you're ready to make that call to the broker! 📞✨ #RealEstateInvesting #ApartmentInvesting #CapRate #NetOperatingIncome #RealEstateMath #multifamily

themultifamilyguy

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Tuesday 22 September 2026 19:45:03 GMT