I'm looking for advise on a commercial cum residential property. It has 4 apartments and 2 commercial spaces all occupied. Below are financial info.
Total Sqft= 8778
Total Monthly Rent= $8700
Total Monthly Expenses= $2600
NOI = $5700
Asking price= $990,000
I know you will be asking lot of questions and I'm new to real estate.I shall try to answer as much as I can about the property. I need advise on the offer range.
I would say you should not be putting an offer on any property if you are unable to calculate the financial return on a property without having to source it from a forum.
There are tons of due diligence that needs to be done on a million dollar property that is way more in depth than what you can source from the bigger pockets community with a forum post.
Take the time to invest in yourself and gain some knowledge before putting in offers.
@Jon Reed Thank you for your response. I have used the tool from BP to analyze and the cap rate was around 7%. This is my second time revisiting the property. I looked at this property back in 2017 but the offer was rejected.Owner wanted $900,000 minimum at that time. Currently the asking price increased to $990,000.I'm not looking to make tons of money but would like to keep it on a long term for retirement income.
@Pavan Kumar What other analysis have you done besides using the online calculator? Why do you think it is worth $90K more in 2019 than in 2017?