All Forum Posts by: Seth Ripley

@Seth Ripley - keep in mind that this is a commercial property (over four units in a multifamily) which means that banks treat it differently than a traditional multifamily and it will have its own independent litany of issues you'll want to familiarize yourself with.  Using the BP Calculator is a good once-over (kind of like a sniff test) to see if a property might cash flow, but if you're looking to purchase you'll want to dig a lot deeper.

Commercial properties are valued based on their Net Operating Income (NOI) and Cap Rate. So you'll want that information.

Other considerations include that this is a 12-unit property.  If you're looking for a property manager, you might be looking at someone who is part-time.  Part-time property managers are hard to find, and quality ones are VERY hard to find because they usually have to split their time between multiple properties with lots of potential upkeep.

Also, I second @George Darcy - the property taxes seem way low.

I'm not trying to scare you off the deal. Just make sure you're thinking of this as a commercial property and get smart on CRE.

@Seth Ripley have you walked the units/grounds yet? I’m assuming the low rent is due to the condition of the property.