Simple realestate Math Estimated value equals net income before debt-service divided by cap rate - this really is simple realestate math, but the tough [...] If he stopped repairing things for a year, and is showing “projected” rents, instead of actual rents collected, the income figure could be $15,000 too high. If the normal capitalization rate is .10 (ask a realestate professional what is normal in your area), meaning investors expect a 10% return on the value of their investment, you would divide the net income of $44,000 by .10.
Chicago Il Real Estate
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