Dallas Fort Worth Multi-Family Valuation Expierment
The purpose of this post is to see the difference in valuations from one investor to another. My thoughts on the DFW MLS listed properties is that a majority of the sellers are very unrealistic with list price and are only being fed this number by an inexperienced broker/agent. This is an MLS listed property so everything is out in the open. It's actually two separate listings and each is a four-plex. I will provide the numbers and details of the listing but you are welcome to view it as well. The exact location of this deal is Irving, Texas.
List price $289,000/building ($578,00 combined)
MLS # 13131613 & 13131606
Seller is not willing to divide properties up. See the following specs:
2 Bed/1 Bath
Rent/unit: $650 (well priced for area)
Units: 8
Taxes/Building: $3770 as of 2013 (City of Irving tax rate 2.69% of assessed value)
Given Expenses: $1,150/building in Insurance, $50.00/building in lawn care
Tenant pays all utilities (separately metered)
My total valuation is $286,000. I arrived at this number with estimated expenses of 50.5% (just a coincidence from the 50% rule), and Commercial financing with 25% down.
I know everyone's financing is different so try not to hammer me on that. A simple reply with your purchase price and a brief summary of how you got there but summary not required.
Ready, Set, Evaluate.