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Multi-Family and Apartment Investing

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Edgar Martinez
  • Architect
  • Orange County, NY
35
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131
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Valuing Vacant Properties

Edgar Martinez
  • Architect
  • Orange County, NY
Posted Dec 13 2019, 13:06

Just out of curiosity, how would you value a vacant or nearly vacant property?

Drove by a large property today that was for sale but it looked like it could possible be vacant or nearly vacant.

Would you still use the NOI x Cap Rate approach?

Assuming it's either vacant or nearly vacant the NOI is likely in the negatives (assuming taxes, lawn maintenance/snow removal, and probably at least minimal heating costs during the winter).

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