Cap Rate - Posted by Paul

import · June 20, 2002, 7:59am

Posted by phil fernandez on June 20, 2002 at 13:02:11:

I would calculate the Cap Rate for both situations. The current one and what the property would produce if fully occupied minus a reasonable vacancy factor with increased rents. But you better be darn sure that you can obtain the rent increases and it’s not pie in the sky thinking.

import · June 20, 2002, 7:59am

Posted by Paul on June 20, 2002 at 07:59:39:

One of the key decisions in purchasing a multi-family apt complex is a CAP Rate. My question is: What figure do I use in calculating the cap rate (the actual or full occupancy)? And the offering price should be based upon past and existing occupancy or its potential occupancy?

Thanks,