If your property is a rental property, take the Net Rental Income at 100% occupancy, take a 10% vacancy, a 4% Management Fee and a $0.15/sf reserve. The resulting number, your net operating Income ( NOI) should then be divided by the CAP rate, which is the rate an investor will accept for a property. Since I don't know the property, a good apartment house today would have a 7-7.5. Anything else would have an 8-8.5 and retail, unless it is over 80% credit, would be a 10+. That will give you the value. From there it gets complicated. You have to then adjust for your market but this is a start.
Oct 5, 2010