All Forum Posts by: Chandra Venkat

Hi Emily,

      I would say to get 

• the income-expense statements for the last 2-3 years, to make sure all the expenses are accounted for. 
• The Rent roll for the last 2 years as well, to see how the rents/vacancies stack up. 
• Any deferred maintenance items to account.
  

A general understanding of the general CAP rates in the area. Then calculate the NOI and the potential price you can offer. Don't forget to include the PM costs into the expenses as well.

Good Luck!

Chandra

I have been a silent participant, consuming a lot of information like the podcasts, forums etc. It has been a great site. We closed on a 4-plex last month, this site has been helpful in getting a lot of my questions answered from the various sources. This is my first posting.

We are looking at some more Multi-Family(2-4 units) properties. I have read about the 50% rule and the 2% rule(seems like I am lucky to get in the 1-1.3% range). When calculating the ROI/CashFlow/Cap Rates, how much does the age of the property matter, if at all. The 50% rule does not have that, but I am assuming it is because it is just a screening tool, how do others use the age of the property into the analysis.

Thanks,

Chandra