Tag Archives: net operating income

Game of Homes And New York City Affordable Housing!

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Over the summer New York City passed a law that focuses increased attention on protecting tenants in buildings that include a large percentage of rent-regulated apartments! Specifically when that building changes hands at an inflated price, suggesting that an endgame of the new buyer might be to get these tenants to move out! In New York […]

Buying (Managing) An Apartment Building? These Are 9 Hidden Costs You Need To Consider!

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9 Hidden Costs For Operating An Apartment Building That Can Impact Profitability, AKA The Investors Return On Investment! If an investor is looking at an apartment building to buy, the classic valuation methodology will be Net Operating Income or NOI divided by an assumed capitalization rate for a given neighborhood! This is true whether the […]

What Is A Cap Rate?

Unlike the way that a value or asking price for residential real estate is determined, the worth of a commercial property is based primarily off of one thing…NET OPERATING INCOME! Residential Real Estate 101 Residential property will generally be valued using a comparison to other properties in the general vicinity. Recent closed sales that occurred nearby the […]

Commercial Real Estate and the Cap Rate Conundrum!

Cap Rates: What they are and where they are heading! For commercial real estate the term capitalization rate, better known as the cap rate, is one of the key measures that can define the attractiveness of an income producing property! The cap rate is simply calculated by taking the net operating income of a building, […]