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Updated about 4 years ago on . Most recent reply

Bob Romano's profile image
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Bob Romano
  • Investor
  • from Warwick, Rhode Island
  • Member since Aug 15, 2015
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Bob Romano's profile image
Bob Romano's profile image
Bob Romano
  • Investor
  • from Warwick, Rhode Island
  • Member since Aug 15, 2015
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Bob Romano
  • Investor
  • Warwick, RI
99
Votes |
134
Posts
Buying & Selling Real Estate

Need help on Commercial numbers

Bob Romano
  • Investor
  • Warwick, RI
Posted

Hey guys, need some help on valuing a commercial bldg I'm presently renting now, with an option to buy. Here are the numbers:

The asking price $2 mill, has an NOI of $212,000 a year. This would put it a 11% CAP rate. My offer is more around 1.2- 1.5 mill which would put it a 14-17% CAP , The cap seems awfully high at these numbers, what am i missing?

  • Bob Romano
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