Offering price for an Apartment
Hello,
I know this questions seems a little too vague, but I'm new to researching apartments and have a potential 12 unit townhouse complex grossing 100k/year. Rent increase possibiity is there to increase gross to $120-$130k/year. My questions is very general in that, is there a particular multiplier of gross that should be applied to the gross to get a ballpark figure. Like say 5 times gross would translate to an offer of $500,000. I am more familiar with independent motels. I understand area and rent market makes a difference too. OR is offer price based on the net? I'm just trying to get a rule of thumb figure. Also on BP podcast I've heard of the 50% rule, does that include the debt service?