Revert Street
Revere Street
Id like to obtain a census to check the demographic data on age, education background, social status, employment, income, marital status, religion and length to stay. No matter I will live this small apartment or not, its important to know what kind of people live in this area and their background.
I will spend amount of time to doing research online. There are thousands of websites that listed apartments for sale or rent. I will go through some bank and mortgage sites to find the available banking loans and check the mortgage rates. Furthermore, searching for some brokers and agents, I can access the multiple services from them.
Location, natural environment, Economic and financial situation, and whole real estate industry would be taking into consideration when I am looking to buy a small apartment. I will also search the government policy and state legislature, like redevelopment program. All those factors would seriously affect the price of the apartment and potential growth both for sales price and rental rate.
I will studies the real estate sections from the Newspapers and other kind of media to further understand the real estate advertising section. Whats more, I will also ask some friends especially who are expert advisors or have financial and real estate investing background or experience. I believe professional media and specialist expert advisors would help me further understand the real estate market and buy a small apartment building in a relatively low or fair price.
Basically, there are two ways for determine the price of the property, the following are two methods:
In order to determine the price to pay for the property, firstly, I need to estimate the annual income and operating expenses by forecasting the income streams and properly estimating the vacancy rate based on my research and analysis. I can get NOI based on cash stream. Then, cap rate is required to estimate and there are also two alternative approaches to deriving a cap rate. The first is called band of investment approach, which rate of return required by equity investors and the interest rate of debt are weighted by the proportion of total value. Another approach is called comparable sales approach, which derives the cap rate on comparable properties that have recently been sold and then making a judgment base on the property. Finally, determine the price of the property according to formula NOI divide by cap rate.
The second way to determine the price to pay for the property is estimating the price based on similar houses sold recently. This is the much easier and more direct way to value the property. However, several flaws would cause the value less correct. For instance, real estate property is unique and each house is different from any other house based on its location,