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Updated over 6 years ago,
5 Unit Commercial building Valuation
I'm considering a property in Utah that has 5 separate offices (all are currently rented) in a 11,000+sf building in a nicer area where rents are about 3-6% lower than the average in the area. All 5 leases will expire within 3-9 months.
I own several residential rental properties.
I've never analyzed commercial business buildings.
This building's asking price is $1.4m.
QUESTIONS:
1. Any calculators similar to the one on BiggerPockets for residential properties out there you recommend?
2. What key factors should I consider to determine if this is a good deal or not?
3. What ROI, IRR, CapRate, Monthly Cashflow, etc., should I target if I were to buy this deal or another commercial business building?
I'm a newbie in commercial buildings. I've had some success with residential and I want to strongly consider commercial now.