Seeking Equity Or JV Partner
We are looking for investors to work with us in our niche of Tampa Bay real estate market. We concentrate on the small apartment complexes in the range of four to fifteen units. Focusing mainly on buildings that are in unique, in trendy areas and that cannot be duplicated. Historical neighborhoods such as Hyde Park, Seminole Heights, Tampa Heights which include properties from around Bayshore Boulevard to areas in and surrounding Ybor City, are prime examples of the neighborhoods that we concentrate on.
We focus on turning out quality homes for potential buyers, paying close attention to detail and offering quality products and craftsmanship that would normally be considered upgraded items for most builders. We do all this and also keep resale prices within the low 200’s which we feel is our niche of the market . Our goal is to continue to offer such unique homes while working within our communities to provide affordable workforce housing to individuals such as our local firemen, policemen, school teacher and postal workers just to name a few.
We are looking for a minimum of 250k investment and are offering with great return on your investment.
Please contact us for further information regarding what we have to offer you, we have several projects in the works..
Email: **Please See My Profile**
SPAM!
It certainly is not SPAM.
I would also ask that you look up the definition of SPAM in the webster’s dictionary before you use such a word in posts by other individuals.
actually, here is the lookup for you :
spam (sp m) Pronunciation Key
n.
Unsolicited e-mail, often of a commercial nature, sent indiscriminately to multiple mailing lists, individuals, or newsgroups; junk e-mail.
It maybe a good idea to post the numbers you are using. I am confused how the cap rate goes down renting two additional units. I assuming there is more to your story about the numbers.
That jumped out and bit me too. How will the cap rate go down when you get more money coming in???
Maybe I am not looking at this right.
Purchase price = $360,000 Current NOI is $36,000. However, if I were to rent out 2 out of the 3 currently vacant units, income would go up to $49,000. That would make the Cap approximately 7.3 if we don’t/can’t raise current rents.
Does that help a bit?
Show us the numbers on how you got your NOI. Maybe then we could help out a little. It seems as though the more you have rented the higher the CAP rate.
I thought the Cap rate was a factor of sales price divided by NOI.
Am I incorrect?
Quote:
On 2006-04-19 11:24, GA_John wrote:
I thought the Cap rate was a factor of sales price divided by NOI.
Am I incorrect?
Yes, so if your NOI is 10k/year and sales price is 100k, cap rate is 10%. If you rent additional units and NOI is 12k, cap rate goes to 12% (assuming sales price remains at 100k).
Ok, but with the numbers where they are, would you go forward on this deal?
Thanks to all who have helped on this thread. I am always learning, and this is a great (and more imoprtantly less expensive) place to do so.
Just a quick clarification. Cap Rate = NOI/Sales Price. With the numbers you provided, if you rent the two units your cap rate will be 13.6%. In general, yes, these are good cap rates. However, be sure to verify the income and expenses. Also, consider the potential appreciation or lack thereof of the specific property within your specific market. Good Luck.