General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated almost 7 years ago,
Do you include garage income in property analysis?
Good morning!
We might make an offer on a multi-family property, and it's not a great deal (wait...don't judge me yet!).
What makes the property unique is that there is a separate 6-car garage in which all of the garages are currently rented out (not to the tenants) for an additional monthly income of $725. I'm intentionally leaving out a lot of the details, because my question is more general. When analyzing a property like this, would you include the garage income in the analysis?If I run the numbers ultra-conservatively, assuming all garages are vacant with no income from them, the property would make about $350 cash flow monthly with 5.5% cash on cash and 6.5% cap rate (I know, not impressive). But analyzing the property with the garage income seems like a game-changer.
I'm appreciative of any feedback the BP community has to offer...thanks!