Commercial bpo based on fmv not actual rent

[Eric Hrlbock]

Hi bper’s

I am a ny investor. I have been investing for a couple of years and now looking to up my game.  I have bought single family, multifamily, done flips , full rehabs and been a landlord for 6 years or so.  I self manage 23 units.  

So I recently started targeting more multifamily. I found a small self storage under a 100 units with a few small residental rentals as well as a few commercial rentals.

I contacted owner with a yellow letter which I normally just pick up the phone. He called me.  I spoke on and off for last 3 months.  He had a bpo done last year closer to a 11/2 years.  The evaluation came up 1.5 million.  I meet his business partner as well and they gave me a copy of the bpo.  The property has an income of 193k a year. The bpo says fmv is 239k.  They use the fmv to say it’s value, that does not make sense.  Is it just me or is that a flaw of a bpo. The value is based on the what it currently brings in - expenses

I got the impression they might not have a n accurate t-12. I wonder what the squedule e looks like.   

I am serious about the purchase, I am waiting for the one partner to come back from snow birding to tell him everything I need to make an offer.  They are both older and they seem to very interested in selling but also no rush to give me documents I need to make an offer.

Any documents that I need to get to really underwrite or under the real value of this place.   

Feedback please. Dm or respond