Quote:
Originally posted by rammstein
I've seen some pretty ridiculous claims (8 caps that should be 5s).
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I'm looking at a few pieces right now as part of a 1031 exchange. While cap rate is important, it is more important to find out if the cap rate is based on actual, or pro-forma numbers. Quite a few brokers are painting pretty pictures with their numbers.
I've been looking at NOI and then figuring out the debt service with a mortgage calculator to see actual cash flow. sometimes my calculated cash flow is quite a bit different from what the cap rate would suggest.