Posted by GL on January 30, 2000 at 08:03:46:
It would be a good idea to check up on some other properties that are for sale. Do you know how to figure the capitalization rate, cash flow and return on investment?
How much does this seller need to come down? - Posted by NB(ID)
Posted by NB(ID) on January 29, 2000 at 18:47:50:
Stats:
Good location-view overlooking river
Built 1953
Out of state owners
Asking price $59,900
2/1 bath duplex–top apt. rents for $295 per month
bottom apt. rents for $280 per month
Small house rents for $250 per month.
Taxes per year = $1109.20
Assuming these rents are appropriate (and I’m not sure since I haven’t seen the place yet), how would the formula work to see if this asking price is in line with the current rent?
The realtor states that the owners live in CA and have kept the apartments vacant on occasion so it is easier to show and market. Bottom apt. currently vacant.
Re: How much does this seller need to come down? - Posted by GL
Posted by GL on January 29, 2000 at 18:57:11:
With a cap rate of 16.5 % it looks good to me as it is. What is usual in your market?
Re: How much does this seller need to come down? - Posted by NellB
Posted by NellB on January 29, 2000 at 20:08:20:
GL–I have no idea since I’m new at this. I’ve just been looking around for an investment for my IRA account and came across this listing.