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Updated almost 6 years ago on . Most recent reply

User Stats

18
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10
Votes
Payton Ball
  • Rental Property Investor
  • Charlotte, NC
10
Votes |
18
Posts

Determining Value of Triplex

Payton Ball
  • Rental Property Investor
  • Charlotte, NC
Posted

This would be my first rental property that I would look to househack.  I figure the best way to determine would be using the cap method... but I'm not sure

Here's the rundown: Each unit would rent for somewhere between 950-1100 a month (after renovation). Making the NOI about 24k (rough estimate, and correct me if I'm wrong). There are a couple duplexes in the area, and 3BR 2BA newly renovated homes are selling 250-300k. Homes the same size that aren't renovated going for between 160-190k, with a handful in-between. I feel the ARV would be over 300k in this case, but if I use a cap rate of 10%, would put a value at 240k, which would make this deal a no-go.

Any advise would be helpful.  Time is of the essence.  

Thank you!


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