Negative Cash Flow. - Could be a good Buy

[Canesha Edwards]

Hello all,

How would you evaluate a property that reported negative cash flow for the previous year?

How do I determine an offer price? The property is located in a QOZ in a decent location that will see appreciation due to future approved developments, but I don’t want to over value the property based on “future” hopes.

The property is only 55% occupied which probably explains the cash flow problem. Most of the vacant units need to be rehabbed or updated.

Thanks in advance for any input.