Rents are a factor to Home Value

[Kyle M Nedd]

I know the Cap rate is a significant factor in determine the the true value of an apartment unit.  For example the laundry unit or pool or rents in an apartment when buying becomes a determination the the true cap rate and value at purchase…. So how bout small  Multi family ( duplex’s or triplexs)  does anyone factor in the rental value of unit to determine a price to purchase or sell.. for example  let’s say you inherit tenants with an out dated at apartment  30% below market rent value.. are you considering that factor into the value of the property when negotiating a price point with the seller…we know realtors would tell you can raise the rent in the future… but for me am thinking the actuals now are below value and I will obtain a loss  in the beginning of the purchase…anyone has experience similar situation.. honored to hear your input