There is a 10 unit apartment complex in Bas Axe for sale. All have one BR, separate utilities, acreage to expand, monthly income is $3,900 and asking price is $175,000. Assume 10% vacancy, no capital reserve, and 40% fixed and variable expenses. What is capitalization rate? Why would this be attractive for investor? 

Answer rating: 100% (QA)

Solution Capitalization Rate 234000 1750000 1337 I... View the full answer