Analyzing a Multifamily Building to Calculate the Value

[@danielbello8947]

Great video Patrick, one of the best I've seen explained. I love how you break down all the formulas in a very understandable way.

[@jasonjosephlee]

Buying multifamily is the best thing anyone can do. I was able to buy over 100 rental units in Southern California by adding value to properties and trading up. I do not come from money and all I want people to know, is that anything is possible in Real Estate.

[@danielbello8947]

You still need to fund the down payment, how do you get that amount?

[@keithdevoe9116]

Excellent Job

[@jerrykoonce743]

Great information 🎉🎉🎉

[@alejandrosantos1879]

I love this

[@Walina-gv9ph]

There is no reason for an investor to try to calculate a cap rate. Why waste time doing this if you have the market value?

[@PatrickWalchuk]

Because Cap Rates allow an objective comparison between buildings of different sizes, revenues, and expenses, regardless of their Annual Debt Service, if any. It is also one of a number of data points used to compare one property to another. Some of the others are gross and net multipliers and operating expense ratios, etc. These are used in the comparative financial analysis of multi unit properties.

[@Walina-gv9ph]

@@PatrickWalchuk NOPE! If you are comparing properties for sale but using the "asking price" to calculate a cap rate for "comparison" purposes then all you are comparing is the asking price. Seriously, why compare asking prices unless you always offer asking?! Not a good way to invest. Used correctly you get cap rate comps from sold similar properties and educate the seller why his asking price is a joke. You should know this.

[@PatrickWalchuk]

@@Walina-gv9ph I'm sorry you fail to understand this. I've sold 85 apartment buildings, have 32 years experience and have taken bank appraisal method courses, so I do have some understanding of what I am doing.

[@Walina-gv9ph]

@@PatrickWalchuk Instead of "saying" you know what you are talking about why not just "show" us. Everything you have stated so far is 100% incorrect. I say you can't.

[@AgentInOttawa]

@@Walina-gv9ph The numbers are based on SOLD Prices, not asking prices.

[@Nolan.Gurule]

He said movie 😆

[@fedeicogomez5553]

The math is wrong. Cap rate is actually 4.153% and if you divide NOI by the cap rate, the value is the same as the sale price. The video shows that the value is of 911,707 when it should actually be of 900,000.

[@PatrickWalchuk]

The cap rate in the video is shown as 4.15%. Using this the value is $900,722.