How do you get the price formula using the income and cap rate Thanks

NOI for the year is $114,000 , looking for 6% cap rate, wath is the value of the property
In General Area - Asked by Claude P. - Jun 22, 2012
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Answer(s)

Sylvia W.
Broker/Agent
Tampa, FL

114000/.06=1,900,000

Jun 22, 2012
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Peter R.
Owner/Investor
Miami, FL

Divide noi by ,06 when finding noi...use all expenes except for mortgage..figure sort of like all caspeter r

Jun 23, 2012
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Rob B.
Chandler, AZ

Claude....
Sylvia has the correct answer for your question. NOI $114,000/6% = $1,900,000.
The real test will be to consider the properties that are priced at $1,900,000 and get the best buy possible for your 6% cap rate. Location, quality, rent structure, expense costs, possible capital needs for property improvement, etc.
Good luck and Onward and Upward!
Rob Baird
rob@capratecommercial.com

Jun 23, 2012
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RJ D.
Lender/Mortgage Broker
New York, NY

Why 6%? Where is the property located?

Jun 25, 2012
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Claude P.
Broker/Agent
Ocala, FL

Thanks for the quick response
Claude

Jun 25, 2012
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Patrick R.
Owner/Investor
Charlotte, NC

Value = Annual Net Operating Income / Cap Rate

Jun 25, 2012
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edde k.
Tenant
Los Angeles, CA

Price = Cap rate x NOI

Sep 4, 2012
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