Seeking advice with commercial purchase opportunity

[Michael Maxwell]

“It is based on an 8% cap and 20K per unit for the 24 potential residential units upstairs.”

Is that a thing, can you assign value based on units that don’t exist? It’s not like you’re getting the building with empty units that you have to fill, they literally don’t exist yet. There a a few month to month tenants in place (couple small businesses) what am I missing?

Thanks

[Henry Clark]

You would be paying for your own value add efforts.  Pass or as @Ronald mentioned make an offer in existing cash flow.