When pricing a property we carefully balance out Cost per Square foot, Gross Rent Multiplier, CAP Rate, Cost Per Unit, and Cash Flow and compare with the most comparable sales in the area.
NRSF= Net Rentable square feet
Cost per NRSF= Price/NRSF
Cost per unit= Price/# of units
Expense/NRSF= Total Annual Expenses/NRSF
Expense per unit= Total Annual Expenses/# of units
GRM= Price/Gross Income
CAP= Net Operating Income/Price
Pre Tax Cash flow= Profit after paying all expenses including loan. (Percentage is that #, divided by the down payment)
If built after 1978 in Los Angeles= NON Rent Control
Pro Forma= Rent you could get for that unit if it was vacant today