What is capitalization rate

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Question - There is a 10 unit apartment complex in Bas Axe for sale. All have one BR, separate utilities, acreage to expand, monthly income is $3,900 and asking price is $175,000. Assume 10% vacancy, no capital reserve, and 40% fixed and variable expenses. What is capitalization rate? Why would this be attractive for investor?

Reference no: EM132093380

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