Serenity without isolation. This custom all brick home sits on 2.5 acres and backs up to the water (Echo Lake). The kitchen has been updated and is a must see. Expansive grand entryway leads to open living areas. The home even includes an office for those who just can't get away from work. Two and half acres in a cozy estate sized neighborhood allow for privacy but the neighborhood is across the street from the championship golf course of Cypress Creek. And it is located less than 3 miles from downtown Smithfield, Virginia, a historic waterfront town. Come relax in your new home. You can pick back up the stress when you get back to Norfolk (only 30 minutes away) or Yorktown (also only 30 minutes).

Contact Tim Churchwell at (757) 251-6082, email: tchurchwell@gsh.com or Shearl Adkins at (757) 696-3207, email: sadkins@gsh.com for more information on this wonderful home or other properties in Hampton Roads. Our office is located at 340 Main St. in Smithfield, VA 23430 but we maintain offices throughout Hampton Roads for the convenience of our clients. You may also visit www.tchurchwell.com to search properties throughout the region.

GSH Residential Real Estate corporate offices are located at 582 Lynnhaven Parkway, Suite 400, Virginia Beach, VA. 23452. (757) 490-6500. Licensed in Virginia and North Carolina.

Does it get any better? Just listed a lovely horse farm on deep water in the historic waterfront town of Smithfield, Virginia. The property features eight (8) acres, two pastures (one is fenced), two dwellings (3 bedroom, all brick ranch with deck and hottub overlooking the water and a 2 story apartment located near the HUGE barn). In addition to the dwellings, the property features stalls, feeding areas, storage sheds and a huge barn. All for under $550,000. Visit my website at www.tchurchwell.com for more information or call (757) 251-6082 voicemail or Shearl Adkins at (757) 696-3207.

Just listed an immaculate home in Riverwalk in Chesapeake, Virginia for under $200,000. This very well maintained home features two master suites, recently replaced windows, new light fixtures, fireplace. Find serenity in the private back yard with the perfect entertaining deck. Just a short walk to the clubhouse, pool, and tennis courts. For more information, check out http://gshre.com/0831755.ad or visit www.tchurchwell.com. To arrange your personal tour, call Tim Churchwell at (757) 251-6082 or Shearl Adkins at (757) 696-3207.

deliberately didn't talk about "cap rates" in the prior commercial article as I wanted the blog to be a very general introduction. I didn't want to scare away people by using terminology, math, or accounting formulas. However, when considering investment property, whether from a seller viewpoint or a purchaser, one must examine capitalization rates, commonly referred to as "cap rate".

Essentially, cap rate refers to the expected net return on a specific property. It is calculated by taking the gross rents (all rents, fully occupied) subtracting vacancies and credit loss (people not paying) to derive effective rents. Then all expenses, specific to the property, are subtracted from total effective rents. Note that income taxes and debt service are not included. The number derived will produce the net operating income for the property. The net operating income is then divided by the required return (for the buyer) to derive a purchase price.

GI-Vacancies/Loss=Effective Rents

Effective Rents -- Operating expenses = NOI

NOI divided by expected return = Purchase Price

This is important to the seller, as well. Investment properties are priced based on cap rates (and a few other considerations). If a property is producing a NOI of $100,000 and the market expects a 10% return for that type of property, the expected sells price is $1,000,000. Thus, the seller should not expect a price of $2,000,000.

While cap rate is a very important component of commercial investment analysis, there are other considerations utilized in making these decisions. Internal Rate of Return, Gross Rents Multiplier, Cost per square foot, etc. are all analysis tools used in the decision making process. A professional who understands these calculations should be consulted when listing or purchasing investment property.

For more information, please visit my website at www.tchurchwell.com or email me at tchurchwell@gsh.com or call Tim Churchwell at (757) 456-1986.

20142 Magnolia Court W is a custom home, over 3400 sq. ft. that sits on 1.6 acres on the water. The sellers have just reduced the asking price to only $524,900. This custom waterfront home features such upgrades as an in ground sprinkler system, central vac, natural gas grill, granite countertops, custom cabinets, an office, and wired inside and out for music. Relax on the back deck overlooking the water, never having to worry about the tank running out while grilling. Gatling Pointe is a waterfront community of custom homes located in the waterfront historical town of Smithfield, Virginia. It features large lots, sidewalks, playgrounds, a private restaraunt, boat slips, pier, pool, tennis courts, and many more amenities. Waterfront living just like you've always dreamed.

Call Tim Churchwell at (757) 456-1986 or Shearl Adkins at (757) 696-3207 to arrange a private tour or http://gshre.com/0823206.ad for more information on this wonderful home. For other properties, be sure to visit www.tchurchwell.com.