Think you know real estate investing?

By Bruce Firestone | Business Coaching

Oct 07

Try answering this question.

The list price for a duplex at 1234 Any street, Anytown is $575,000 and its NOI (net operating income) is estimated at $30,150 pa (per annum) based on its existing leases and revenue streams.

You expect to incur some additional closing costs including land transfer tax estimate ($7,975), legal fees on completion ($1,100) and title insurance and other closing costs/disbursements ($675).

Hence, its going in/as is, where is cap rate is:

a) 5.2% pa?

b) 4.2% pa?

c) 6.2% pa?

Answer is shown below my signature 🙂

Prof Bruce

FOR REAL ESTATE INVESTMENT AND BUSINESS COACHING THAT’LL HELP YOU PROVIDE FOR YOURSELF AND YOUR FAMILY FOR 3-GENERATIONS, PLEASE CONTACT:

Bruce M Firestone, B Eng (civil), M Eng-Sci, PhD
Real Estate Investment and Business coach
Century 21 Explorer Realty Inc broker
Ottawa Senators founder
1-613-762-8884
bruce.firestone@century21.ca
twitter.com/ProfBruce
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brucemfirestone.com

• MAKING IMPOSSIBLE POSSIBLE
• FREEDOM VIA REAL ESTATE INVESTMENT AND PB4L, PERSONAL BUSINESS FOR LIFE
• FEHAJ, FOR EVERY HOME A JOB
• MAKE YOUR HOME WORK FOR YOU, INSTEAD OF YOU WORKING FOR IT
• HIGHER ROI NOT JUST FOR OWNERS AND INVESTORS, BUT FOR TENANTS, GUESTS, VISITORS, NEIGHBORHOODS, COMMUNITIES, TOWNS, VILLAGES, CITIES AND THE ENVIRONMENT TOO

ANSWER: 5.2%

Image source: Perfect_competition_in_the_short_run.jpeg: Original uploader was Sheitan at en.wikipediaCostcurve_-Combined.svg: *CostcurveCombined.jpeg: Original uploader was Trampled at en.wikipediaderivative work: Jarry1250 (talk) – Perfect_competition_in_the_short_run.jpegCostcurve-_Combined.svg, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=12480562

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About the Author

Bruce is an entrepreneur/real estate broker/developer/coach/urban guru/keynote speaker/Sens founder/novelist/columnist/peerless husband/dad.

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