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Be very careful if you participate in a real estate auction. Auctions encourage impulsive behavior and at most auctions there's usually someone dumb enough to pay too much for a property-- better to let that person win. No one ever got rich paying too much for something!
In May, a record high of 50% of U.S. homes sold for more than their list price.
Cash-on-cash return for a property = Cash flow before taxes($)/Cash investment($)
Commercial real estate trade groups are challenging the Centers for Disease Control and Prevention's decision to reinstate the federal eviction moratorium, arguing the agency lacks the authority to issue such an order.
The Capitalization or Cap Rate for a property is the ratio between its net operating income (NOI) and the property’s value:
Capitalization Rate = Net Operating Income/Value
You can transpose the formula to solve for property value or net operating income:
Property Value = Net Operating Income/Capitalization Rate
Net Operating Income = Property Value*Capitalization Rate
New Jersey Gov. Phil Murphy has given lower-income tenants in the Garden State protection from eviction until the end of the year, as well as setting aside an additional $750 million in coronavirus emergency rent and utility-payment assistance.
