20 Unit Apartment Complex all 1/1 with 100% occupancy.
Monthly Gross Rents are $8,450. Most leases are 1 year with a weekly payment of $110. Several are monthly payments.
Operating Expenses including debt service of $4,100.
Cashflow of $4,350 a month.
What’s the value using the income method?
The only simple way (direct capitalization) to do this without knowing anything about your market is for you to build your own cap rate. To do this you to add your return OF investment and the return ON investment that you want. Ideally you will recapture your initial investment (return OF) and make a profit above it (return ON). There is a few different methods to determine this (Band of Investment, Building Residual, and Land Residual) however they far exceed the content of this forum. I’ll PM you to talk more about them.
With the exception of the band of investments method, debt service plays no part in the valuation of property and is not included in the operating expenses for any method.
Send me your mortgage constant (annual debt payments divided by original loan balance), an Itemized list of operating expenses, and your desired (reasonable) rate of return, market vacancy rate and I’ll give you a rough cap rate to work with.