For example a 15yr term with initial rent set at comps, 3% annual increases and a terminal sale for the FV of construction cost - all discounted back to NPV at a 6-8% discount rate.These methods provide quite different prices, especially because the NPV is so sensitive to changes in assumptions.Has anyone done this before and how did you calculate the price?

Anyone have any experience, suggestions, etc on whether you use an annual servicing program on your central A/C units?

I am typically looking for at least $100 cash flow per unit and at least a 10% cash on cash return.I like to be conservative when underwriting annual expenses, and my typical underwriting guidelines are: Insurance - $500/unit Trash Removal - $1000 for under 10 units, $2000 for over 10 units Advertising & Marketing - $250/unit Liscenses & Fees - $50 to $100/unit depending on county Repairs and Maintenance - 5% of gross rental income Snow Removal & Landscaping - $1000 Management Fees - 5% of gross rental income Real Estate Taxes - from public record Utilities - use figures from listing or $150 per month per unitCould it be that most listings are grossly overpriced or am I being too conservative?

Also, these tenants typically are very similar to residential, in that they are looking for an annual term lease.  

Also an appraisal is not required annually, just a value of the asset that could be supported with comps in your file.

@James Syed these seem like typical deals for commercial lenders altho 80% ltv seems generous.It all depends on what you need to accomplish from your financing, cash flow or debt pay down.For ex. 225k loan amount 5% 30 amort=1207.45 P & I Same LA 4.5% 20 am=1423.46All things being equal and it cash flows then 20 am best choice especially if lender reviews DCR/LTV and overall performance of loan, because you need to protect yourself from the annual covenants and restrictions  that could cause lender to call loan due.Good job taking action!

This would create a monthly cash flow of $720.16 with a cash on cash of 40% after I increased the annual overhead expenses to 24k per year vs the owners stated 14k (property could use some clean up and better management).  

I only want to work with people I respect and have a quality relationship with.I would rather have 10 quality clients that buy once a year and make seven figures commission annually then deal with a bunch of one off people that are a bunch of drama.My goal is to be invested heavily in my clients success over decades.

I am since purchased the property and figured the best course of action for me at this time is to put them on a free, annual, renewable, license agreement.

Investors can also access both debt investments in the form of first or second-position loans secured directly or indirectly by residential and commercial properties usually yielding a fixed interest rate of 8-12% annually as well as equity investments in residential and commercial properties offering cash flows during the hold period and/or a portion of the profits upon a sale of the property.RealtyShares is an online investment platform that uses the internet to pool investors into funds that hold an interest in a pre-identified private real estate investment.