quick and easy way to value a multi-family apartment building?
no need for complicated solutions, just looking for a ballpark figure here.
lets assume a 6 family rental property. rent from tenants collected (ie; rent-roll?) each month is $6,000. tenants pay their own utilities. yearly taxes are $8,000. insurance is $3,000. no cost for maintenance (ie; property management company) since i'll be doing all of it....yes, i know what im doing. ![]()
how much are you willing to pay for this building?
(im hoping i didnt leave anything out)
many thanks
There are at least three ways to value real estate.
#1 evaluating comparable sales.
#2 Cost of building the structure and then depreciating it by its age and functional obsolescence.
#3 from the cash flow.
You have given us some rough information for a ball park guess at the cash flow approach.
My ball park guess is 100 times the monthly rent roll. So that would be $600,000. But in reality I would sit down with a budget and a very conservative guess at vacancy rate and large repairs such as AC and roof. I would probably come in lower than that.
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