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Updated over 7 years ago,

User Stats

5
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0
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Ryan Green
  • Real Estate Agent
  • Chicago, IL
0
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5
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3 -3 flats right next door- commercial?

Ryan Green
  • Real Estate Agent
  • Chicago, IL
Posted
I am looking at a deal that consists of 3- 3 unit buildings right next door and sold by the same owner. He is advertising and selling them separate from one another. I am looking to purchase it all as a package though. It has a lot of upside, as rents are well below market. Once stabilized the cap rate and cash on cash returns go up significantly. Although these are 3 residential buildings ( 9 units total) right next door to one another, can I use the forced appreciation method and sell on the future numbers or am I still in the mercy of the sales comps when selling? Thanks for your help in advance all! Ryan