Updated over 10 years ago on . Most recent reply
Building Equity
Hello All!
Two part question here...I'm looking at purchasing a 4 unit building that is assessed at 150,000 and is listed at 125,000. The assessment is from 2012. Does that mean if I purchase it for 125,000, will I automatically have 25,000 in equity? Or do they re-assess it upon purchase?
Second part...The building has the potential to add 3 more units. If I do this at a total cost of 75,000, my all-in cost would be 200,000. How would I pull equity out of it? How does the bank value multi-unit properties? Off of the cashflow? Thank you!