Just got an 8 unit apartment under contract

[Dominique Palmer]

My partners and I just put an 8 unit apartment and 6000sqf warehouse under contract. My question is since it is pretty much a commercial property, how is the value of the property determined.

[Brandon Wells]

@Dominique Palmer this is a multi-tiered question.  Typically though an appraiser will use a income capitalization approach on an income producing asset.

Essentially value is derived from the Income - Expenses = Net Operating Income and then a cap rate gets applied to it to determine value (cap rate isn't a sole indicator of value just one of the many parameters that people look at).

Feel free to DM me some details and I can assist, but it varies market to market.