Quote:
Originally posted by cool1g
assuming there is no major repairs to be made and the local rental market is strong enough to lease the units in a month or so, it sounds like a good deal to me.
i was looking at a 4-plex in Vegas recently with the same rents and it was priced at $275K and would probably fetch $400K in LA if it was in a decent neighborhood...
and airpal, FYI the correct way to value the property would be to assume it is 100% leased, estimated the value and then deduct out the cost to fix up for leasing and the rent loss from having the units vacant for a bit of time.
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What method of valuation are you using? I'm referring to the income capitalization approach which is net operating income over cap rate. If you can give some more information as to your valuation method, that'd be great as I'd be interested in learning more about it.