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Formula for co op and condo investors

Started by meridians
almost 12 years ago
Posts: 28
Member since: Jan 2013
Discussion about
Hi, Is there a formula to 'plug in' numbers when investing in a co op or condo for sublet- i.e. enter the amount for maintenace, mortgage interest, income from rent, etc., in order to find out what you will be either ultimately earning (or owing!)? Thanks.
Response by alanhart
almost 12 years ago
Posts: 12397
Member since: Feb 2007

Investors focus solely on "cap rate" (capitalization rate), which is equivalent to yield. And they mostly ignore any tantalizing thoughts of asset appreciation. Therefore for investment purposes it's not good enough merely to cashflow.

An easy (but not necessarily the best) plug-in worksheet is available for free at http://visulate.com/rental/?m2=investment ... note that their assumptions might not be applicable to coops/condos. Also, you can't save your work, but you can print it.

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Response by truthskr10
almost 12 years ago
Posts: 4088
Member since: Jul 2009

pp < sp

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Response by MIBNYC
over 11 years ago
Posts: 421
Member since: Mar 2012

Very helpful Bravehart

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