Formula For Analyzing Properties

Hello everyone,
This is a two part question. What is the mathmatical formula (cap etc) & some key strategic factors when analyzing first time multi-family property?
And what are typical cash on cash return percentages?
thank you & happy holidays!
In Buying Property - Asked by lara n. - Dec 26, 2011
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Answer(s)

azam m.
Broker/Agent
Charlotte, NC

you can contact me at adam@poasch.com, i have a few spreadsheets that will help

Dec 26, 2011
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

There are two ways to look at a property, the income approach as well as the sales comparable approach. Each one needs to be evaluated. The cash on cash return can be misleading. For example you could purchase a class D property that is throwing off a ton of cash but is a management headache due to the types of renters the property has attracted. For the first approach take a look at my website www.fairvielending.com to see how to calculate the NOI on a property. you will have to determine the appropriate cap rate depending on market conditions, etc...

Apr 16, 2012
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