Your agent and your property manager are very confident that you can spend $150,000 ($10,000/unit) and increase the rent from $500 to $700/month for each unit. Here are the new numbers after this improvement: $10,500 = total monthly rent ($700/unit) -$3,500 = monthly operating expenses $7,000 = net operating income per month What is the annual NOI for this property? What is the purchase price? Calculate the cap rate for this property Talk about the investment choice that you would make.

Answer rating: 100% (QA)

Answer To calculate the annual net operating income NOI we can multiply the monthly NOI by 12 Annu... View the full answer