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Updated almost 8 years ago on . Most recent reply

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Scott H.
  • Real Estate Investor
  • Utah
0
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10
Posts

5 Unit Commercial building Valuation

Scott H.
  • Real Estate Investor
  • Utah
Posted

I'm considering a property in Utah that has 5 separate offices (all are currently rented) in a 11,000+sf  building in a nicer area where rents are about 3-6% lower than the average in the area.  All 5 leases will expire within 3-9 months.

I own several residential rental properties.

I've never analyzed commercial business buildings.

This building's asking price is $1.4m.  

QUESTIONS:

1. Any calculators similar to the one on BiggerPockets for residential properties out there you recommend?

2. What key factors should I consider to determine if this is a good deal or not?

3. What ROI, IRR, CapRate, Monthly Cashflow, etc., should I target if I were to buy this deal or another commercial business building?

I'm a newbie in commercial buildings.  I've had some success with residential and I want to strongly consider commercial now. 

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