Rental Property Investor · Boston, MA · Member since 2020 · 1 post · 0 votes
Hi All,
I have the possibility of buying a mixed-use 4 unit (2bd/1br) with 2 commercial properties included. Brand New construction, in very popular up & coming town 30 mins outside of major city.
How can I go about evaluating the commercial space to find or figure out to get a good number to rent out to that space?
Is it based On the business I’m potentially bringing in or just based on the area/comps (similar to renting)?
I’m brand new to the the RE world and this opportunity came across my “desk.” I’m currently working on funding for the property, and will be going to evaluate the property soon.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
@Cody Costa, commercial real estate (mixed-use, multi-family, office, whatever) is valued based on NOI and Cap Rate. You'll have to make some projections since it's brand new.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
@Cody Costa, commercial real estate (mixed-use, multi-family, office, whatever) is valued based on NOI and Cap Rate. You'll have to make some projections since it's brand new.
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
6y
Income approach, and sold comp($/sf) are to be employed. Rental income, expenses, utility and vacancies. Must be in the similar neighborhood in the area.