Analyzing property with below market rents

[Derek Mountain]

Hi BP,

I'm currently analyzing a 4-plex in a good area with below market rents. Using the BP calculator, would you analyze the property based on current rents or future/expected rents?

Thanks!

Derek

[Brian Garrett]

I would analyze it both ways:

Current Rents - Determine my offer based on how it's currently performing

Adjusted Rents - Determine how it will perform once I get it stabilized at market value