Offlinei know in units of 4 or more there is a formula for determining value called the income value or approach.
i can't remember how it's determined and i know it's on this site somewhere. can someone help me find what i'm looking for? i need to present offers on multi unit properties and need to be able to assess value.
keep moving forward, rob
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whether you think you can or you think you can't, you're right.- Henry Ford
keep moving forward, rob
Here is a link to a discussion about Cap (Capitalization) Rates found on the website. http://www.deangraziosi.com/articles/real-estate-investing-tips/capitali... Hope this helps.
i appreciate the help. i know i'm going to make make goal of 24 deals before i go back to the edge.
keep moving forward, rob
whether you think you can or you think you can't, you're right.- Henry Ford
keep moving forward, rob
If you want to use the income approach you will be using the cap rate like dvorkink was mentioning. The cap rate will give you a rate of return on your money if you were to purchase the deal 100% with cash. Since Cap rate is determined by just the expenses of the income property, it give you a ROI on your performing asset. That is where your value is with income properties.
Mikessler
Advisor
I always say Keep Moving Forward! Never Give Up On Your Dreams!
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Follow my daily investing journal and read about the deals I've done and am working on at:
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i appreciate the info.
keep moving forward, rob
whether you think you can or you think you can't, you're right.- Henry Ford
keep moving forward, rob