Agree on the lending quantity, the interest rate, the length of the finance and also whether you are paying principal and passion or rate of interest just payments. Example: Let's state that a home has a net income of $50,000 a year, as well as it is sold for $700,000. To make sure that building was sold with a 7% cap price. Instance: The ordinary cap rate in your location is 8%, you have an apartment building that has a net operating revenue of $43,200