(NOOB) how do YOU calculate a properties vaule?

[J Campbell]

subj pretty much says it all... much appreciate any input. looking towards my first purchase...

[Joshua Feit]

Josh here. I'm a newer buy/hold investor in the Atlanta market.

Interesting question that could be interpreted a number of ways. Two come instantly to mind:

-How do I calculate a property's market value?
Comps. Recently-sold examples from the MLS. Easily procured with the assistance of a realtor, and readily available online with a bit of searching (use multiple sources / sites to get realistic data).

-How do I calculate a property's value to me?
Much more interesting question. Best answered with a quick story: I recently bought a quad in an area that makes many local investors wrinkle their noses. When I told a seasoned investor about my acquisition, she said, "Oh wow, you're brave!". Well, the numbers on the place told a different story. I picked it up for 80K all in, including around 7K of deferred maintenance repairs. Even with management in place and payments for PITI, water, sewer, trash, and lawn care, the place nets around $850 every month. The units have a history of 95% occupancy, and tenants stay for years at a time. So I bought it, and I am thrilled that I did. Not a sexy neighborhood, not an appreciation play, just a solid income-producing property that moves me a few steps closer to my goals.

In short, I calculate a personal property 'value' based on how much closer it gets me to my goals.

Hope it helps. Cheers!