Owner occupied multifamily analysis
4 Replies
Jessie Shaw
posted about 1 year ago
I'd love to learn how to do analysis on small multifamily properties that are owner occupied. If you yourself are living in one unit, I would think these "base hit" numbers, 12% CoCroi, $100/ unit rules of thumb would change, but how? With the rental calculator is there a way to compensate for your occupancy as owner? I'd love to figure out a formula that better incorporates this owner occupied value. Thoughts? Ideas?
Aaron K.
Specialist from Riverside, CA
replied about 1 year ago
Evaluate it as if all units were not owner occupied then work backwards. If it doesn't work when all units are tenant occupied it is likely not a great investment.
Jessie Shaw
replied about 1 year ago
Thank you. Aaron K. That's a different way of looking at it. Appreciate your response.
Ned Carey
(Moderator) -
Investor from Baltimore, MD
replied about 1 year ago
If you are looking at this as an investment then listen to @Aaron K. 's comment. However if this is to be your home long run then consider that it is a way of making your housing expense less expensive.