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Updated about 4 years ago on . Most recent reply

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530
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Jon S.
  • Investor
  • Tampa, FL
92
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530
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Triplex valuation

Jon S.
  • Investor
  • Tampa, FL
Posted

How does one evaluate the value of a triplex using income? 

If for example, rental income is expected to be $3000, how does that effect the valuation of the triplex property?

I know how to analyze the cash flow, the Cash on Cash return, etc. I'm really wondering how to analyze the price one should pay in order to get a triplex with that rental income. Is there a standard formula? 

Thanks

  • Jon S.
  • Most Popular Reply

    User Stats

    6
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    Michael Pierri
    • Gainesville, FL
    6
    Votes |
    6
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    Michael Pierri
    • Gainesville, FL
    Replied

    I meant to add, the book "What Every Real Estate Investor Needs To Know About Cash Flow...And 36 Other Key Financial Measures" by Frank Gallinelli does a good job explaining the numbers/valuation side of real estate investing. The book focuses mostly on commercial properties, but you can apply the valuation and finance techniques to residential RE.

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