Trying to figure out the Capitalization Rate on this...
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[{"id": "i65tor5", "text": "Monthly revenue equals 49800x.35= 17430\n\nMultiply by .95 to account for vacancy= 16558\n\nMultiply by .85 to account for opex = 14074 of monthly Noi \n\nMultiply by 12 to annualize = 168896\n\nDivide by 2,000,000 = 8.4% cap rate", "replies": [{"id": "i65vnsc", "text": "Thanks for comparing how I was working out the problem to yours. I see where I made a mistake. Thanks for helping out.", "replies": [], "depth": 2}, {"id": "i66zeov", "text": "Side question, is it possible to figure a cap rate without having a valuation of the property? \n\nI'm going through partial-eminent domain case and unable to get an commercial appraisal yet, need the city offer first which is going to take time. Currently I just have (Property Value = Annual Gross Rents X GRM) but the true value is in the land/location for future development.", "replies": [{"id": "i67m8sc", "text": "The formula is IRV. Income= Rate x Value which means that Value=income/rate is also true. \n\nYou must know, or be able to estimate, two values in order to solve for the third.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i65tvvs", "text": "8.4%", "replies": [], "depth": 1}, {"id": "i65yu8d", "text": "I don\u2019t see industrial deals often but this is the first time since 2016 I\u2019ve seen one higher than like a 6cap", "replies": [{"id": "i65zrju", "text": "I think this isnt a real deal, and rather some kind of test question or study OP is doing.", "replies": [{"id": "i662y0w", "text": "correct. taking a licensing course", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i660of3", "text": "Why are you trying to calculate a cap rate?  \n\nThe calculated cap rate at 8.4% means pretty much nothing.\n\nHow did you decide to pay $2,000,000?", "replies": [{"id": "i66ax72", "text": "It's an assignment. He's doing a homework problem.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i667w66", "text": "Did you just post a homework assignment?", "replies": [{"id": "i66nvm5", "text": "I posted the next deal Elon Musk is doing\u2026", "replies": [{"id": "i69z4il", "text": "Why did you delete? That\u2019s fine that you posted it, just be up front it is a problem for a certification for an exam. We all need help sometimes. Some people actually thought you were buying a commercial property for an 8+ cap.", "replies": [{"id": "i6am1wr", "text": "I got my answer (which thank you) but someone DM\u2019d way too aggressively about posting a certificate question so I took it down. Im from California, I don\u2019t like fighting. I\u2019m like the ocean, just catching my waves.", "replies": [{"id": "i6atup5", "text": "I hear ya.  Love the beach.  A drink in my hand and my mouth feet in the sand is where I want to be. To quote Snoop - cold hands, hot feet.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i66tv9g", "text": "It used to happen all the time here.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i66usyk", "text": "Why should we do your homework for you?", "replies": [{"id": "i670vwp", "text": "Because it\u2019s Reddit and it\u2019s an open forum to ask questions???", "replies": [{"id": "i670zkz", "text": "What happens when you\u2019re taking an exam and you can\u2019t get on Reddit?", "replies": [{"id": "i671dku", "text": "Maybe I\u2019ll try Twitter next.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]