@themultifamilyguy: Want to evaluate a real estate deal in under 60 seconds? ⏱️ Here’s the step-by-step math to estimate a property’s value and potential upside: 1️⃣ Gross Potential Rent: Take the number of units × average in-place rent × 12 months. 2️⃣ Effective Income: Multiply your gross potential rent by 90% (to account for vacancy). 3️⃣ Net Operating Income (NOI): Deduct 50% for operational expenses like property management, taxes, insurance, and maintenance. 4️⃣ Property Value: Divide your NOI by the market cap rate. (For example: $100k NOI ÷ 7% cap rate = $1.4M value). 5️⃣ Forced Appreciation: Renovate and raise rents to double your NOI...boosting the property value to $2.8M and creating $1.4M in value! Hit the follow button for more multifamily real estate tips! 🏢 #MultifamilyInvesting #RealEstateInvesting #PassiveIncome #CommercialRealEstate #multifamily
How can one calculate 90% ? Is that the current % of renters or wishful hope one will achieve annual goal for consistent renters? Is cap rate the average in the neighborhood or was it calculated specific to the building?
2026-10-21 00:49:19
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El D' Guanajuato :
this method is or work also for any multifamily from 4 units to 10, 12 or more ?
2026-10-21 00:53:33
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Joseph Camerieri Realtor :
Awesome
2026-10-21 01:37:14
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