Math

Question 1

how do you determine Yield (or cap rate)

Answer 1

NOI/sale price or market value

Question 2

what does NOI mean

Answer 2

Net operating income

Question 3

how do you calculate NOI

Answer 3

gross potential rent - vacancy rate-operating expenses

Question 4

what is capitalization rate, ie 6%

Answer 4

same as yield or cap rate

Question 5

when do you apply “imediate repairs” that need to be factored when determining market value

Answer 5

at the end, after you have determined the market value