Cap Rates and Building Valuations

calculator-424564_1280-PDCap rates are what determine commercial building valuations.  All sophisticated investors look at cap rate, even if they do not know what it means.  Some Realtors like to hide expenses, and not calculate them to get higher selling prices and higher cap rates.

This post will help you understand how commercial investors use cap rate to evaluate a building.  It can also be used as a basis for a residential rental.

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Apartment Classifications and Expected Returns

consumption-19150_1280-PDApartment Classifications.  When you are an experienced property investor of multifamily properties, there is an apartment grade that you will be intimately familiar with.  Banks are familiar with it, insurance companies are familiar with it, and all investors that invest money in a multifamily complex should be.  Google the topic and find out more if you want, but here is a summary.

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