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Updated over 2 years ago on . Most recent reply

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5
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David Moon
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5
Posts

10 Unit Multifamily Valuation

David Moon
Posted

Hello Community!

Hoping to get some input from all the multifamily veterans out there. I have been analyzing an opportunity to purchase a 10 unit multi family using the handy dandy BRRRR calculator to calculate the NOI and Cap rate for the property. From what I gather, the commercial real estate valuation is NOI/Cap Rate. Am I correct to us the Pro Forma CAP Rate since it's based on after rehab, rent and stablizing the property? Thank you in advance for your help.

  • David Moon
  • Most Popular Reply

    User Stats

    2,615
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    Kim Meredith Hampton
    • Real Estate Broker
    • St Petersburg
    2,104
    Votes |
    2,615
    Posts
    Kim Meredith Hampton
    • Real Estate Broker
    • St Petersburg
    Replied

    @David Moon Have you viewed the property, and/or had this inspected? Is this just from an OM, and not actuals? I don’t see things like pest, landscaping, reserves etc…

    business profile image
    Engel & Völkers | St. Pete
    5.0 stars
    14 Reviews

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