How to determine value on 4 plex for newbie investor
Hello-
I'm looking at a 4 plex with an asking price of 950K (California!) and annual rent of roughly 77K. As I read through the forums and google, I'm seeing 1% rules for cash flow and 50% rules for NOI and expenses. What's a good way at determining value of a property like this? I.E. how far off from asking does this turn to a good investment.
What I can add is that the property is in decent condition and the rent is below market value. I’d guesstimate the market value of rent is more around 90K annually. Utilities are passed through and I’d be managing myself, I live right up the street. I’m a total newbie to all of this, any advice is appreciated!