Purchasing multifamily in area where assessments are falling
I am considering purchasing a 11 unit. The building seems solid with a great rental history and solid tenants. My only concern is the person is asking for a little more than the assessed value of the property, which has been dropping ever since 2008.
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@Cynthia Dixon Yeah @Brie Schmidt is correct
For my market, assessed value based on taxes doesn't mean much at all in my market (Philadelphia). Taxes are low here so you can have a property that has sold for $200k with only $1,100 in taxes and assessed at a value a lot less than purchase price.
Your focus should be on finding what the average cap rate is for you market, get the actually numbers on the unit (not a pro-forma!) and run with your estimate of price that way.
Best of Luck