rental sale pending- need interest bearing ideas for proceeds

[enron_by_the_sea]

[quote=flu]
Anything else?[/quote]

Is it customary to consider vacancy (2-3 weeks) & repairs in cap rate calculation?

[Coronita]

[quote=enron_by_the_sea][quote=flu]
Anything else?[/quote]

Is it customary to consider vacancy (2-3 weeks) & repairs in cap rate calculation?[/quote]

I don’t know. That’s what I’m asking.

[CA renter]

[quote=flu][quote=enron_by_the_sea][quote=flu]
Anything else?[/quote]

Is it customary to consider vacancy (2-3 weeks) & repairs in cap rate calculation?[/quote]

I don’t know. That’s what I’m asking.[/quote]

From what I understand, you are supposed to use net operating income to determine cap rates. Yes, you should include *all* expenses, including vacancies, maintenance, taxes, insurance, etc. when trying to determine cap rates.

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FWIW, I could not agree more with flu’s suggestion to have your daughter buy a condo in SD and you carry the note.

My family often did this as well. Follow closely his suggestion to make it 100% legal and official…for all the reasons he’s stated above.

[Author]

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