The Industry Brokers Valuation Calculator
Enter the property's income and expenses. Everything updates as you type.
Know your NOI?
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Skip income and expenses. Clear it to go back.
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Know the asking price and cap rate?
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Enter both to work out the NOI from a listing.
Using the NOI you entered above. Income and expenses below are ignored.
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Total rent for a full year if every unit is leased.
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Parking, storage, laundry, CAM reimbursements.
%
Share of the year units typically sit empty.
%
Rent you expect to bill but never collect.
Effective gross income$0
Gross rent + other income, minus vacancy and credit loss.
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Yearly real estate tax bill.
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Yearly property and liability premium.
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Only the utilities the owner pays, not tenants.
Repairs and maintenance
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Routine fixes and upkeep during the year.
Property management
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Yearly management fee in dollars.
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Plowing, mowing and grounds upkeep.
Reserves for replacement
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Money set aside each year for roof, HVAC, parking lot.
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Anything else: trash, legal, accounting, advertising.
Total expenses$0
Net operating income (NOI)
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Effective gross income minus total expenses, per year
A cap rate is the yearly return a buyer expects. Value = NOI ÷ cap rate.
Estimated value
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at a 8% cap rate
4%Higher price, lower risk
20%Lower price, higher risk
%
Type any rate, like 7.25. The slider follows.
Lower cap rates usually mean stronger markets and safer tenants; higher cap rates usually mean smaller towns or more risk.
See how a loan changes your yearly cash flow. Uses the NOI above.
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Filled in from the estimated value. Type your own to change it.
%
Share of the price you pay in cash. Starts at 25%.
%
Yearly interest rate on the loan. Starts at 7%.
yrs
Years to pay the loan off. Starts at 25.
Loan amount—
Monthly payment—
Annual debt service—
Cash flow after debt—
NOI minus annual debt service.
Cash on cash return—
Cash flow after debt divided by your down payment.
Debt service coverage ratio—
NOI divided by annual debt service. Above 1.00 means the property covers its loan payments.
What you might earn if you hold the property and sell it later. Uses the financing above.
yrs
Years you plan to own it.
%
How much NOI rises each year.
%
Starts at your purchase cap rate.
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Have a sale price in mind? It replaces the exit cap rate math.
Sale price at end of hold—
That year's NOI divided by the exit cap rate.
Loan balance at sale—
Principal paid down over the hold—
Total cash flow over the hold—
Each year's NOI minus debt service, added up.
Net sale proceeds—
Sale price minus the loan balance. Selling costs are not included.
Total profit—
Cash flow plus net sale proceeds, minus your down payment.
Equity multiple—
Total cash back divided by your down payment. 2.00x means you doubled your money.
IRR—
Your yearly return, counting when each dollar comes back.
This is an income estimate only. For a full opinion of value with real local sales comps, talk to us.
Get a real opinion of valueor call 701-318-7545
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This calculator provides estimates for informational purposes only and is not an appraisal or broker opinion of value. Contact The Industry Brokers for a professional opinion.