OfflineThere is a 6 unit vacant building right around where I live. The windows are boarded up, graffetii is spray painted on the walls, the place looks like trash. I know if I could take control of this building I could turn things around. I want to make an offer to the seller, but the only problem is that I dont know how to determine the value of incoming producing property if its not producing any income.
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I hope you get an answer on this, I'm curious to see how this would work. There's a vacant building in my area that I was looking at but have the same issue.
Jean Maestre
The Maestre Property Group, LLC
"Our deepest fear is NOT that we are inadequate, Our deepest fear is that we are powerful beyond measure"
"Do or do not, there is no try"
"Every adversity, every failure, every heartache, carries with it the seeds of an equal or greater benefit"
I know if it's a residential property, you value it by comparable sales. But with apartment buildings and income producing properties it's valued differently.
Well a couple of options that you will want to look at dealing with vacant properties. First you can look in Tax records in the assessors office to see what the Tax Assessment is on the property. This won't give you a "Firm" number but will put you in a ballpark figure. Second thing you can do is go to www.totalviewrealestate.com and can get another ball park figure that can help you to narrow down the value even more. Then lastly if these numbers look promising, then you can have a real estate agent run "Comps" on the property to give you a very detailed number telling you the value of the property. I don't have my real estate agent run comps on EVERY SINGLE property that I view because that is a lot of work that I don't want them to have to do. This will help you a lot if you research properties in this order.
Happy Investing.
Matt W.