GREY:CVHIF - Post by User
Post by
brentski99on May 14, 2019 12:58pm
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Post# 29745626
Value of real estate held?
Value of real estate held?Assuming that $419,000 annual rent which is referred to as cashflow is NNN using a cap rate of a bit over 8% value = $5,000,000 from an appraisers point of view. Higher cap rates are used on less desirable properties where an investor or buyer wants a higher rate of return on his investment reflected in the risk. Higher the cap rate lower the value and visa versa.
I/R = V so the cap rate in the area for these types of properties determines the value.