We can provide you with a cash offer for your apartment building. To estimate its value, you can utilize the Income Approach, specifically the Net Operating Income (NOI) formula. Here’s how it works:

[ \text{NOI} = \text{Gross Rental Income} – \text{Operating Expenses} ]

In this formula:

• Gross Rental Income represents the total rental income generated by all units in the building.
• Operating Expenses include all costs associated with running the property, such as maintenance, property management fees, property taxes, insurance, utilities, and vacancies.

Once you’ve calculated the NOI, you can determine the property’s value using the Capitalization Rate (Cap Rate). The formula is as follows:

[ \text{Property Value} = \frac{\text{NOI}}{\text{Cap Rate}} ]

In this equation:

• NOI is the Net Operating Income calculated using the formula mentioned earlier.
• Cap Rate is the desired rate of return or capitalization rate for similar properties in the market, usually expressed as a percentage.

By plugging in your calculated NOI and a relevant Cap Rate, you can estimate the value of your apartment building. Remember that the Cap Rate may vary based on market conditions, property location, and other factors, so thorough research is essential. Consulting with a real estate professional or appraiser can also provide valuable insights and accuracy in determining your property’s value.

For further assistance or to discuss your apartment building’s value in more detail, please contact Freddie Avila, our Private Funding Liaison, at contact@privatemny.com or fill out the form at webuy-apartmentbuildings.com. You can also reach us directly by calling 310.940.8886. Visit privatemnylender.com for more information and to connect with our team.