Cap rate= 10.9% Cash on cash return= 36.75% Initial investment= $28,000
Shevy Akason and Associates Principles:
1) Cap rate of 8%+ using todays numbers, and not less than 5.5% using worst case scenarios 2) We use 5% vacancy as todays baseline, and 10% vacancy to calculate worst case scenario 3) We use todays rental numbers to calculate expected rent and account for rental deprecation of 12.5% to account for worst case scenario 4) We use an interest rate of 5% for those that are buying as a primary residence and 6.5% for investors 5) We account for lost income in downpayment of 2% 6) We Calculate 1%/year of the purchase price for maintenance reserves
Shevy Akason and Associates "We're not Just Real Estate agents, we're real estate consultants" Shevy Akason | Realtor | Evergreen Realty Phone 949.769.1599 | Fax 949.753.0671 findmylandmark.com The best business compliment that one can receive is a referral.
