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
ROYAL LePAGE Performance Realty broker
Ottawa Senators founder
1-613-762-8884
bruce.firestone@century21.ca
twitter.com/ProfBruce
profbruce.tumblr.com/archive
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: *Costcurve–Combined.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
Session expired
Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.