I'm thinking of bidding on a triplex at a county auction and wanted to get the input from people here on placing a value on the property.
The building is in a c-d neighborhood, although the street it is on is better than the other blocks due to less traffic. The market rental rate for the units (after repair) is 625/mo, this coming from another building across the street with equal sized, clean, painted, with newer cabinets
The tax assessed value is 72000.
Unsure of repairs needed yet but if I guestimate 12/sf i'm looking at about 25000 (I'll verify this before bidding)
Comparable sales do not reflect much due to the number of sfh surrounding the property.
If I price it according the cap rate method, I come up with 122000
Bank's highest bid is 70000
I intend to BRRR this property, but not certain if I'm looking at a deal.
72000 purchase price (foreclosures in this area that sell to 3rd parties typically go for approxmately assessed value)
Buying cost: 500
evictions/cash for keys: 1500
Initial cash outlays: 99000
Annual revenue: 22500
Lawn maint: 480
NOI: 12233/.10 = 122330
question is what method would the appraiser use to value the property.
anything it look like I'm missing here?