How to value small mixed use property

1 Reply

Hi y’all

I’m looking at buying a small mixed use property. It has 3 apartments and a storefront. Also the garage is being rented out.

I am going to put a light rehab into it and would I delay like to refinance all my money out of it.

I am just confused on how this property is valued? Is it just based on comps? Or cap rate? Or both(cap rate for the storefront and comps for the other apartments)?

I can’t really find any comps for it. Just one property that has currently been on market for around 50 days.

Thanks!

It will be very hard to find a comp for that. Cap rate will help you get an idea of what it is bringing in so that is a great start. With its many avenues you can rent all apartments, the store and garage for miscellaneous income.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you