Is this a good deal if I pay $525k for rentals that has $78k yearly Income from Tenants

The Property we are looking to buy has LOTS of upgrades..if $525k is not the right # What should we offer?
In Buying Property - Asked by Bob L. - Feb 1, 2010
Report Abuse
Answer this Question

Answer(s)

Cutting Edge R.
Broker/Agent
Decatur, IL

The 78K would be nice IF that is your NET. If it is not your NET- I would move on- there are better out there.

Feb 1, 2010
Report Abuse
Shaw M.
Owner/Investor
Sacramento, CA

Dear Investor,
Generally an investment property is valued around 7% cap rate. net operating income divided by purchase price gives you the cap rate. You would want to be at least a few % points above that 7% to give you a healthy margin of safety since tenants move in and out. Make sure you know what all the costs are because thats going to impact your cap rate. Good luck and let me know if you have any questions.
Shaw Monfared
916 267 3861

Feb 1, 2010
Report Abuse
Gregory G.
Broker/Agent
San Francisco, CA

Where is it?
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)968-6065
gregory.garver@gmail.com

Feb 26, 2010
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question