Look at what the property is doing now. Remember the future is the future. There are many measures that you can compare properties to each other with (such as cap rate, IRR, capital accumulation, etc.) to help determine which is best on paper. But there are many intangeables that can change the outcome. Be conservative with your numbers in the future. Always, always remember that whatever you estimate in the future will be wrong because it is the future. Use numbers and estimates as a gage for comparison purposes but don't think they are cast in stone.
If you would like more help contact me a firstname.lastname@example.org or 626 485-5163.
Paul Sylvester, CCIM
Apr 27, 2009