Valuation on a 4plex with not enough dedicated parking!

[Bryan Williamson]

Hello all We are looking at a 4 unit in a good area close to downtown it needs almost everything. The owner has gutted it but I think he should have gutted everything but that's beside the point. The problem I think is not having enough parking. The building would be 4 2brd 1ba. Units with only four parking spaces. The owner has done some framing and started some plumbing but is in a holding pattern right now. I think that's a negative and could hurt the rental potential is that a fair assessment? Rents in the area are anywhere from 600-1200 so I thought to be safe 900 is a good bet. We will have one of the nicest rentals in the area though. He's asking 160 in it's current condition so at 900 assuming 7% cap-rate I'm getting $308,000