How much can I get for my property

I have a 6 unit building in the city of Long Beach. The cross street is 15th st, and Chestnut Ave. I have 4 (2 bed, 1 bath) 2 (single, 1 bath) and is generating approx. $5,000.00. How much can i get for it?
In Selling Property - Asked by Joseph B. - Jun 30, 2010
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Answer(s)

Gene G.
Broker/Agent
Houston, TX

A quick way for a ballpark number using Loopnet is:
1. Scan loopnet multifamily listing in your area and look at posted cap rate. It will be a percentage (if no cap rate listed, take posted net income and divide by list price)
2. annualize your income from property
3. Divide annual income by cap rate posted or one you worked out. This will give you a list price based on your annual income.
This is a general ballpark that will tell you what your property may bring when compared to other similar properties in the area. A more accurate number will require deeper analysis.
Good luck.

Jul 1, 2010
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Rob B.
Chandler, AZ

This is a question that more likely could be asked, "What would be a reasonable asking price for my residential income units"? If this were indeed the question my answer would be:
Determine what the remaining income is after deducting all your annual operating expenses from all of your collected annual income.
Divide this figure by 8%. Check your result and then divide by 6.
The first result should give you a good asking price. The second division will show you how much you are asking per unit.
You could then check on LoopNet to see what others in the Long Beach area are asking for their listings for similar properties and similar locations. For a modest sum you can also utilize the service from LoopNet that will provide you with comparable sales for your area in the past. A word of caution though: when looking at comparable sales, accept only sales within the last 12 months as a measurement.
I hope this helps a bit. However, my best advice is find a good commercial listing agent for residential income units. Personally, I would avoid giving a listing to an agency that sales mostly single-family homes. While these agencies are excellent in their field, very often they are not as good when it comes to commercial transactions. There are many fine commercial property brokerages that will be more than happy to help you.
Rob Baird, CA RE License #544165, (One of the oldest active licenses in CA)
951 515-5855

Jul 1, 2010
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Rick L.
Appraiser
Cleveland, OH

I take it that the $5000 is a monthly gross. Take the $5000 X 12 months then minus out 35% in expences ( which includes taxes but not debt service) multiply that figure by 10 ( census data exreacted). Take this figure times 125 if the housing stock in a one half mile radius has an average selling price of $225000 to $375,000 then multiply. If in fact the houses values are less the $225,000 Multiply that number times .20 if under $150,000 Multiply by .50. This lesson is called "synthetic valuation". My wokbook is going to be used by HUD for Mass appraisal of empty houses and c and I buildings.

Jul 1, 2010
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Devin P.
Broker/Agent
Delafield, WI

Joseph-
I felt compelled to answer your questions after reading the answers that where posted prior. All of them- although quite different from one another was a good answer. However, i do feel that each of them could have expanded there answers a bit- and i would like to offer some additional insight.
First and foremost you need to know more about your specific geography than any of us can from other parts of the country. I did like the answer given to you by Gene- although i think rather than take a quick scan of loopnet for the going cap rate, which i suspect might be all over the board- i would have you call several local commercial lenders and ask what cap rate have they been lending on. I cant stress that these be local lenders. To be safe i would suggest you call 3 or five of them and then use an average.
If your not familiar with cap rate (short for capitalization rate) - look it up. This is the best way to get a quick snap shot answer as to the value of a building with more than four units-
Good Luck!

Jul 1, 2010
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Marie T.
Broker/Agent
Pasadena, CA

Talk to and get valuations from your local real estate brokers. Get recommendations from friends and other property owners. Consider that when listing with a broker, you almost always increase your bottom line.

Jul 6, 2010
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Tyler J.
Broker/Agent
Portland, OR

Joseph,
Call 3 real estate agents and have them provide you a BOV (broker opinion of value). A good BOV will show you what the market value is for you asset and will include rent comparables of similar properties, recent sales of similar properties, and current on market listings to give you an idea of what is on the market and how competative your property will be if it were to go to market. Most important, it will give you a good idea what the value is and why. Be sure that the broker explains why it will sell for X, not just that it is worth X.
The BOV's are free and should add a lot of value if you decide to sell or hold the property. Often times real estate agents will look at your financials and the property and make recomendations to improve the value of the asset in the short and long term.
It is important that you work with a real estate agent that specializes in selling apartment buildings and focuses on the Long Beach area.

Jul 8, 2010
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