Start with the gross income. [...] The rate
Start with the gross income. [...] The rate of return expected by investors in a given area gives you the capitalization rate, and this is what you use to accurately appraise an income realestate. The tough part getting accurate income figures. Is the seller showing you ALL the normal expenses, and not exagerating income? Therefore, a market analysis using comparable sales isn’t normally used. Net income before debt-service, divided by the “cap rate:” It really is a simple formula. Be careful when using any realestate appraisal method.
Pacific Beach Real Estate Listings
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