Mar 13
It would be difficult to find similar ones nearby that have recently sold. The building would be worth $187,000 less (.08 cap rate) than your appraisal shows. It’s also not ideal to use replacement costs for income realestate appraisal. You simply divide the income of $52,000 by .10. Suppose the usual rate is .08, meaning investors in the area expect an 8% [...] You then apply the capitalization rate to this figure. In that case, the income figure could be $15,000 too high. You then subtract all expenses, but not mortgage payments.
Miami Fl Real Estate Listings
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