How it works

Our focus is on multifamily real estate that it is acquired and then rented out to Tenants . Tenants, pay rents to live in the properties. Some of the income from the rent is used to pay for operating expenses , such as:

• Property taxes,

• Utilities,

• External illumination,

• Trash collection,

• Maintenance,

• Management expenses, etc.

After subtracting the Expenses from the total income, we arrive at The NET OPERTAING INCOME.

Multifamily Properties Investments , as any investment instrument, are valued based on their Rates of Return. (CAP RATE)

The example shows a 4-plex with a total gross rent in the amount of $47,532.00 . Other incomes and concessions , minus total expenses , bring to the owner an annual net operating income of $36,304.40. Notice the property valuations a different Capitalization Rate.