What should be the right offer for this property

[Sunny Kapila]

Looking in investing Multi Family property with 180 doors, there is no asking price, NOI is $1,200,000 (annually), Cap Rate is 5.8%.

What should be a reasonable offer for this property?

Please Advice

[Chase Louderback]

Hi @Sunny Kapila

Value = NOI/Cap Rate, so in this example (assuming the NOI and cap rate are correct) would be ~$20,689,655.

Have you run the numbers to see what YOUR expenses in operating the property will be?  Is there Value add potential?  Is that Cap rate reflective of where the market actually is (aka is it priced fairly).

It's important in this market to know what you will be getting into when you take over the property and that you will be cash flowing from day 1.

Best!