Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Commercial Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago on . Most recent reply

User Stats

10
Posts
0
Votes
Scott H.
  • Real Estate Investor
  • Utah
0
Votes |
10
Posts

5 Unit Commercial building Valuation

Scott H.
  • Real Estate Investor
  • Utah
Posted

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. 

  • Scott H.
  • Loading replies...