Tham khảo tài liệu 're academic press private real estate investment_2', tài chính - ngân hàng, đầu tư bất động sản phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | The Rules of Thumb 55 and net income in turn is a function of vacancy and expenses Net Operating Income Gross Potential Income Vacancy Expenses 3-15 leads us to simplify the difference between gross and net income as Net Operating Income Gross Potential Income 1 evr 3-16 where evr expense and vacancy rate 0 evr 1 . Rearranging the value equation recalling that GPI GRM and substituting our simplifying assumption produces Capitalization Rate Val GRM 1 - evr Val 3-17 Given that value and gross income are accurately reported this makes the honest cap rate we yearn for a function of the expense and vacancy rate chosen. Further rearrangement gives us an equation for evr that is dependent on only two variables both commonly found in reported sales of investment property the GRM and the cap rate of which one GRM is more reliable than the other. Using these two rules of thumb together in Equation 3-18 we can gain some additional insight. evr 1 cr grm 3-18 One should be cautioned that mathematically it is possible for evr to be negative. However in real estate it can never be less than zero. Should a negative evr be calculated by Equation 3-18 from observations in a dataset it virtually must result from misreporting of either or both the capitalization rate or GRM. A moment s thought about what it would mean for an apartment building to sell for ten times its gross income AND at a 13 cap rate will convince you that such things do not occur in nature. In Equation 3-19 we solve for GRM in terms of the other variables. 1 evr GRM - cr 3-19 GRM is always greater than 1 all buildings in first world countries sell for more than their annual gross income and cr the reciprocal of a positive 56 Private Real Estate Investment real number must always be greater than 0 and less than 1. Thus the only way for both sides of the above equation to be greater than 1 is for the numerator of the ratio on the right to be greater than its denominator. Since evr is a rate that by definition is a .
