capitalization

Something to Think About #148: Capitalization, Part 2 by Klarise Yahya, Commercial Mortgage Broker – BRE: 00957107 MLO: 249261

First Step. That begins by determining the subject’s scheduled gross scheduled income (GSI): Ten units, each rented at $2,800 yields a monthly income of $28,000. Multiply by 12 to get an annual GSI of about $336,000. Second Step. Subtract estimated fixed and variable expenses: $336,000 minus $136,000 (rounded, for neatness) equals $200,000. The mnemonic for…